An Import Export Code (IEC) unique code is of ten digits used by every recognised export-import business owner in India. The Directorate General of Foreign Trade (DGFT), Ministry of India, issues the IEC code. The best part is that there is no need for regular renewals because the IEC code comes with lifetime validity.
It is required for customs clearance, shipment, and for transactions with foreign banks. Exporters need an IEC code for sending shipments and receiving money from abroad. Thus, it is not permissible to operate import-export activities without an IEC registration in India.
Now that you got some idea about what is an Import Export Code (IEC), let us look at some crucial aspects of IEC registration in India.
Who Should Have IEC in India?
According to the Directorate General of Foreign Trade, it is mandatory for the following to acquire IEC registration in India:
- Exporters and Importers
- Manufacturer cum exporter
- Export houses
- Producers who import raw materials as inputs
- Entities that intend to get into the EXIM business
- Importer of goods who seeks special authorisation from the DGFT
Note: Only the registered entities can avail of the IEC code registration in India. Henceforth, first, you must have a business certificate and then apply for IEC registration.
What are the Required Documents for Online IEC Registration
First, the applicants for IEC registration have to visit the online portal of DGFT and fill out the e-form with relevant details. You will need the following documents while filling out the electronic form:
- PAN card, Passport, DL, and Voter ID of the managing partner.
- Copy of the business certificates such as partnership deeds, incorporation certificates, or any other relevant document.
- Bank certificate or cancelled cheque (applicable for partnership firms)
- Tenancy proof of the business space
You may register for IEC for a sole proprietorship, partnership, Limited Liability Partnership (LLP) and a private company, trust, and Hindu Undivided Family (HUF).
Now that you have got all the required documents ready, let’s proceed to fill out the online IEC registration form.
How to Register for IEC Code?
Here is a detailed and easily comprehensible process for IEC registration:
Step 1: Acquire a class-2 digital signature from the certified agency.
The Certification Authority confers the digital signature which is signed by the CA’s private key. The following details are mentioned in the digital signature:
- Owner’s name
- The public key of the owner
- The expiration date of the public key
- Issuer’s name
- Digital signature of the issuer
- Serial number
Digital signature leverages the Public Key Infrastructure Technology (PKI).
Step 2: Apply through the e-form with DGFT
You will have to create a legitimate account on the DGFT portal and then file an application for IEC code registration.
Step 3: Upload the required documents in the appropriate format
Make sure that you upload all the relevant documents in the prescribed format in order to avoid any complexities.
Step 4: Submit the application fees
After submitting the documents and filling in the details, proceed to the payment section. Your application form submission will be done after fee payment.
And you are done!
This is all that you had to do in the IEC registration process. Now the concerned authority will inspect the application and examine the submitted documents. Afterwards, if everything is correct, they will issue the IEC code.
Now you must have realised that this is a hassle-free process, you do not have to physically go anywhere because everything takes place online.
Validity and Cancellation of IEC Code
There is no need for renewals in IEC registration because it is valid for a lifetime. Regarding the cancellation of IEC registration, it might take place because of the following reasons:
- Breaching rules and provisions mentioned in the Foreign Trade Policy
- Forging information in the shipping documentation to mislead the custom authority
- Not strictly following the terms and conditions of the customs
- Importing or exporting prohibited commodities
Features of the Import Export Code
Here we have mentioned the characteristics of IEC to help you have a better understanding of the Import Export Code and its prominence in the trading business.
Compulsory Requirement
All export-import businesses ought to have the IEC registration. Carrying out any import and export operations without the IEC is impermissible.
Lifetime Validity
The IEC registration is a one-time registration. Once you have registered your business, it remains registered and recognised by the concerned authority. Thus, there is no need to spend any extra time or effort on renewals.
Legal Evidence
This certification is perceived as legal evidence and testifies that your export-import business is recognised and verified by the DGFT. It enables seamless export-import operations.
IEC Registration Helps Abide by Law
There is limited compliance after the firm has obtained the IEC code. All businesses irrespective of the nature of their imports or exports, can use the IEC code.
Essential for Foreign Bank Transfers
While processing foreign bank transfers, it is mandatory to mention the Import Export Code.
Who is exempted from Import Export Code Registration in India?
Businesses or individuals can be exempted from IEC registration under the following scenario:
- If the export or import is done for personal purposes.
- Those individuals who have to export or import commodities to or from Nepal and Myanmar via China and Indo-Myanmar fringe zones with transfers below ₹25,000 do not need the IEC code.
- Certain chemicals like SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies), as notified under Appendix-3, Schedule 2 of ITC (HS), do not require IEC code registrations.
Enhance Your Benefits as an Exporter
The RODTEP scheme (Remission of Duties and Taxes on Export Products) is introduced to ensure that the exporters get refunds on the embedded duties and taxes that were earlier non-refundable. This scheme is propagated to encourage and increase high-quality exports to enhance the Indian economy. Both manufacturers and merchant exporters are eligible to seek benefits from this scheme without any threshold of turnover. However, the most important thing is that the commodities must be directly exported by the applicant.
Get all your documents in place and apply for the Import Export Code registration to gain enormous benefits through the Foreign Trade Policy of the DGFT!
