Business Consulting
that Makes an Impact!
Import-Export Code (IEC) Registration
Overview
Possessing an import-export code (IEC) is mandatory for businesses/traders engaging in activities of import/export. The IEC is issued by the Directorate General of Foreign Trade, an agency of the Department of Commerce under the Ministry of Commerce and Industry.
Registering for an IEC is a one-time process and the license thus issued remains valid throughout the continuity of the business without any need for renewal.
The Importance of IEC
- IEC helps an importer to obtain customs clearance for receiving his consignments shipped from abroad
- Banks solicit the IEC information of an importer when he/she makes remittances to entities located abroad
- Customs authorities at ports solicit an exporter’s IEC information when he/she needs to send shipments abroad
- An exporter’s IEC information must be furnished before the bank enabling him/her to receive payments in foreign currency for their shipments
Steps for IEC Registration Online
- Visit the DGFT website (https://www.dgft.gov.in/CP/)
- Under the Services tab of the homepage, choose the IEC Profile Management option which will lead you to the IEC Profile Management page
- On this page, click the option Apply for IEC
- A LOGIN/REGISTER window appears. Select the REGISTER option, input the necessary details, and click the Send OTP button
- Enter the OTP(s) received and click the Register button. Upon successful OTP validation, you will be notified with a temporary password that may be changed upon the login into the DGFT portal
- Upon registering on the DGFT website, login to the portal using your login credentials, then select the option Apply for IEC
- Fill in the application form, upload the prescribed documents, deposit the prescribed fee, and then click the button Submit and Generate IEC Certificate
- Following the submission of the application, the DGFT will issue the IEC code after due verification
Documents Required for IEC Registration
- PAN belonging to the company or the applicant
- A copy of the applicant’s Voter ID, Aadhar, or Passport
- Address proof of the registered office premise and a copy of its rental agreement along with a NOC of its owner, in case the business is operating from a rental property
- Copies of the canceled cheques belonging to the current bank account of the company or individual as the case may be
- Statement of the bank account belonging to the company or individual as the case may be
- Certificate of Incorporation of the business
Businesses/Traders that are Exempt from Import-Export Code (IEC) Requirement
- As per the Government of India’s latest mandate, possessing an Import-Export Code (IEC) is not compulsory for all such businesses/traders that are registered under GST. For all such traders enrolled under GST, their PAN shall be treated as their IEC for the purpose of engaging in activities of import and export.
- An IEC is not mandatory for Government of India enterprises and notified charitable institutions that engage in import/export.
- An IEC is also not mandatory for those businesses that engage in the import/export of goods only for personal purposes and not commercial purposes.
Merits of IEC Registration
Allows Growth of Business:
IEC is immensely beneficial in that it allows you to go global with your products and services, thus driving exponential business growth.
Allows Traders to Avail Numerous Benefits:
With an IEC license, traders can advantage themselves with various benefits of government schemes through Customs, Directorate General of Foreign Trade (DGFT), Export Promotion Councils, etc.
Filing of Returns Not Required:
Traders are not mandated to file their returns if they have an IEC, irrespective of whether they engage in import or export.
Renewal Not Needed:
An IEC has lifetime validity and can be utilized for all import and export transactions.
FAQs
1) Are individuals eligible to acquire IEC?
A) Yes, individuals who are sole operators/proprietors of a business are eligible for an IEC license. They may obtain the IEC either against their names or against the name of their company.
2) Is it mandatory to possess an IEC?
A) Yes, a business entity/individual cannot import to India or export from India without the possession of an IEC. Unless an entity/individual enjoys an IEC exemption by virtue of their classification under exempt categories, they are mandatorily required to furnish their IEC.
3) Is it a must for businesses to update their IEC profile every year?
A) Yes, businesses must update their IEC profiles annually. If an IEC profile is not updated annually, it may get deactivated. However, a deactivated IEC profile could be reactivated upon updating it.
4) How do you obtain an IEC?
A) Businesses that want to obtain an IEC can do so by applying for it and submitting the supporting documents online on the portal of the Directorate General of Foreign Trade (DGFT).
5) Is submission of PAN mandatory while applying for IEC?
A) Yes, submission of a self-attested copy of your PAN is mandatory while applying for IEC.
6) Should you submit a copy of both the sides of your PAN card while applying for IEC?
A) Yes, for the purpose of establishing the issuing authority’s address, it is mandatory that you provide a copy of both the sides of your PAN card.
7) Is the issuance of an IEC license product-based?
A) No, the issuance of an IEC license is not product-based. It can be issued to importers/exporters of any products/goods/commodities.
8) Do you need to have a Digital Signature Certificate (DSC) to register for IEC?
A) There is no compulsion on having a DSC in order to obtain an IEC. An application for IEC registration may be processed through Aadhar-based authentication. The introduction of DSC in IEC registration has been done merely to reinforce the process of its issuance and modification.