Import Export Code

Import Export Code (IEC Code)- Overview

An Import Export Code (IEC) is a 10-digit code necessary for Indian import/export businesses. It's issued by the DGFT, Ministry of Commerce, and doesn't require filing or renewal. Importers need IEC to clear customs and make payments to foreign banks, while exporters need it to send shipments and receive payments.The IEC Number is essential for any importer/exporter operating in India.

Situations where IEC is required

• When an importer has to clear his shipments from the customs then it’s needed by the customs authorities.
• When an importer sends money abroad through banks then it’s needed by the bank.
• When an exporter has to send his shipments then it’s needed by the customs port.
• When an exporter receives money in foreign currency directly into his bank account then it’s required by the bank.

Documents required for IEC (Import Export Code) registration

For IEC Code Registration, the following documents are required:

• Individual’s, firm’s or company’s copy of PAN Card.
• Proprietor’s voter ID, Aadhaar card or passport copy.
• Proof of establishment, incorporation or registration of the partnership, society, proprietorship firm, company, HUF, etc.
• Proof of address of business premise, such as sale deed, lease deed, rent agreement or utility bills (electricity bill, telephone bill or mobile bill).
• Individual’s or company’s or firm’s cancel cheque copies of current bank accounts.
• A self-addressed envelope for delivery of IEC certificate by registered post.

Benefits of IEC registration

Expansion of business

IEC assists you in taking your services or product to the global market and growing your businesses.

Availing several benefits

The Companies could avail several benefits of their imports/ exports from the DGFT, Export Promotion Council, Customs, etc., on the basis of their IEC registration.

No return filing

IEC does not require the filing of any returns. Once allotted, there isn’t any requirement to follow any sort of process for sustaining its validity. Even for export transactions, there isn’t any requirement for filing any returns with DGFT.

Easy processing

It is fairly easy to obtain IEC code from the DGFT within a period of 10 to 15 days after submitting the application. There isn’t any need to provide proof of any export or import for getting IEC code.

No need for renewal

IEC code is effective for the lifetime of an entity and requires no renewal. After it is obtained, it could be used by an entity against all export and import transactions.

Cases where Import-Export Code (IEC) is not mandatory

According to the latest circular issued by the government, IEC is not mandatory for all traders registered under GST. In all such cases, the PAN of the trader shall be construed as a new IEC code for the purpose of import and export. Import Export Code (IEC) isn’t required to be taken in case the goods exported or imported is for personal purposes and isn’t used for any commercial purpose. Export/ Import done by the Government of India Departments and Ministries and Notified Charitable institutions need not require getting Import Export Code.

Importance of Import Export Code

The advantages of obtaining an IEC are manifold, and a selection of these benefits is highlighted below:

• Global Market Access: The IE Code acts as a gateway to international markets, facilitating the smooth entry of products into the global arena. By obtaining an IE code, Indian companies gain easier access to international trade, fostering opportunities for expansion and progress.
• Simplified Online Registration: The process of acquiring an IE Code is entirely digitised, offering a hassle-free experience with minimal document submission.
• Minimal Document Requirement: Acquiring an IEC doesn't necessitate an extensive document submission process, making the endeavour more efficient and straightforward.
• Perpetual Validity: An IE Code registration boasts lifelong validity, remaining effective as long as the business operates. This eliminates concerns about renewals, updates, and filings related to Import Export Code registration, as the registration remains intact throughout the company's existence.
• Curbing Illicit Goods An IE Code registration boasts lifelong validity, remaining effective as long as the business operates. This eliminates concerns about renewals, updates, and filings related to Import-Export Code registration, as the registration remains intact throughout the company's existence.Transportation: One fundamental stipulation for securing an Import-Export code is the provision of authentic and accurate information. This requirement acts as a deterrent against the transportation of unlawful goods, enhancing the integrity of the trade.
• Access to an Array of Benefits: Importers and exporters reaping the benefits of an IE code can tap into a spectrum of advantages. Registered businesses can enjoy subsidies from entities like Customs and Export Promotion Council. Furthermore, through Letter of Undertaking (LUT) filing under GST, exporters can engage in tax-free exports. Alternatively, if taxes are paid during exports, exporters can claim refunds of the tax amount.
• Simplified Compliance: In contrast to various tax registrations, those engaged in import and export activities are not burdened with specific compliance obligations, such as mandatory annual or return filings.

Validity of Import Export Code

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

Nature of the Firm Obtaining an IEC Code

IEC certificate can be obtained by any individual, company, partnership firm, Limited Liability Partnership (LLP), or any other type of entity engaged in import or export activities. Whether you are an exporter or importer, having an IEC certificate is mandatory for all such transactions. Even if a business is not actively engaged in import or export activities, but it plans to do so in the future, it still needs to obtain an IEC beforehand.

Prerequisites for Applying IEC Code

To apply IEC code online, the following prerequisites are required:

• A valid Permanent Account Number (PAN) card issued by the Income Tax Department of India is mandatory
• The applicant must have a bank account in the name of the firm or individual, as IEC certificate is issued in the name of the applicant
• The business entity should be registered under the Registrar of Companies (ROC)
• The applicant needs to submit the relevant documents such as identity proof, address proof, and details of the business entity to the DGFT office.
• The applicant needs to submit the relevant documents such as identity proof, address proof, and details of the business entity to the DGFT office.