Import-Export Code (IEC) Registration for Indian Businesses

What is the Import Export Code?

An import-export code is a 10-digit alphanumeric code that is issued by the Director General of Foreign Trade (DGFT). It is a unique identification number that importers and exporters need to run their businesses. The Import Export Code is popularly known as the IEC number. Businesses involved in the import and export of goods are mandatorily required to produce the IEC registration certificate.

When is Import Export Code (IEC) Required?

The import-export code is required in the following situations -

• Required by customs authorities when an importer needs to clear shipments.
• Required by the bank when an importer sends money abroad.
• Required by the customs port when an exporter sends shipments.
• Required by the bank when an exporter receives money in foreign currency directly into their account.

What are the Benefits of IEC registration?

Here are the key advantages of obtaining an IE Code for businesses involved in import and export:

• Unlocks International Market: The IE Code is a mandatory requirement for the import and export business, allowing products to reach the global market. It facilitates smoother entry for Indian companies and opens doors for growth and expansion.
• Online IEC Registration: The process of obtaining an IE Code is fully online, making it quick and hassle-free with minimal document submission.
• Minimal Documentation: Obtaining an IEC requires only a few documents, making it a simple process.
• Lifetime Validity: The IE Code registration is valid for a lifetime as long as the business continues to exist. There are no issues with updating, filing, or renewing the IEC registration unless it is revoked or surrendered.
• Reduces Illegal Goods Transportation: The IE Code requires the submission of authentic information, preventing the transportation of illegal goods.
• Availing Several Benefits: IEC registration offers significant advantages for importers and exporters, including subsidies from Customs, the Export Promotion Council, and other authorities. Exporters can also benefit from LUT filing under GST to make exports without paying taxes and claim refunds on taxes paid if applicable.
• Compliances: Unlike other tax registrations, businesses with an import or export license are not required to fulfill specific compliance requirements, such as annual or return filings.

How to get Import Export Code (IEC) Registration?

Below are the steps that you need to follow to get the Import Export Code Registration -

• Step 1. Visit the DGFT Website.
• Step 2. On the homepage, click on the ‘services’ tab.
• Step 3. Select the option ‘IEC Profile Management’ option from the drop-down list.
• Step 4. A new page will open. Click on the ‘Apply for IEC’ option on the homepage.
• Step 5. Click on ‘Register’. Enter the necessary details and click on the ‘Send OTP’ button.
• Step 6. Enter the OTP and click on the ‘Register’ button.
• Step 7. Once the OTP is validated, you will receive a temporary password, which you can change after logging in.
• Step 8. After registering on the DGFT website, log in by entering your username and password.
• Step 9. Click on ‘Apply for IEC’ on the DGFT website dashboard.
• Step 10. Click on the ‘Start Fresh Application’ button.
• Step 11. Enter the general information like the details of partner, proprietor, director, karta, partner, bank information and other details.
• Step 12. After making the payment successfully, it is redicted to the DGFT website. The receipt is displayed and can be downloaded for future reference.

What are the Documents Required for Import Export Code (IEC) Registration?

The following documents are required to get an Import Export code or an IEC -

• PAN card copy of the individual, firm, or company.
• Voter ID, Aadhaar card, or passport copy of the proprietor.
• Proof of establishment, incorporation, or registration for the partnership, society, proprietorship, company, or HUF.
• Business address proof, such as a sale deed, lease deed, rent agreement, or utility bill (electricity, telephone, or mobile).
• Canceled cheque copies of current bank accounts for the individual, firm, or company.
• A self-addressed envelope is required to receive the IEC certificate via registered post.

When is Import Export Code (IEC) not Mandatory?

The import-export code is not mandatory in the following situations -

• Traders registered under GST do not need a separate IEC. Their PAN will serve as their IEC code for import and export purposes.
• IEC is not required to import or export goods for personal use, provided they are not for commercial purposes.
• Government departments, ministries, and notified charitable institutions are exempt from obtaining an IEC.

An import-export code registration is mandatory for importers and exporters to carry out their business. This 10-digit code is issued by the DGFT. Ensuring timely registration and compliance with IEC requirements is essential for smooth and successful import/export operations.