Import Export Code License Registration

Overview of Import Export Code (IEC)

Anyone aspiring to start an import/export venture in the country must obtain an Import Export Code Registration, which is issued by the Director General of Foreign Trade (DGFT). Import Export Licence is a 10-digit code with lifelong validity. Importers are unable to bring goods into the country without the Import Export Licence, while exporters cannot access benefits from DGFT schemes without it. In today’s fiercely competitive market, entrepreneurs aim to expand their businesses beyond domestic boundaries. Due to the internet and technological advancements, conducting global business has become more feasible. However, before venturing into international trade, it is crucial to comply with various procedures, laws, and obtain several registrations and licenses. The IEC which is also referred to as the Importer-Exporter Code, is one such mandatory requirement for engaging in imports or exports in India.

Regulation Relating Import Export Code Registration

The Importer-Exporter Code which is also known as the IEC is a mandatory business identification number that is mandatory for both exporting goods from India and importing goods into India. Import Export Code Registration is mandatory for individuals or entities engaging in export or import activities, unless they are specifically exempted. However, for service exports, an Import Export Licence is not necessary, except when the service provider wishes to avail benefits under the Foreign Trade Policy.

With the implementation of the Goods and Services Tax (GST), the Import Export Licence issued is now the same as the Permanent Account Number (PAN) of the firm. The firm obtaining an Import Export Licence may be of various types, including Proprietorship, Partnership, Limited Liability Partnership (LLP), Limited Company, Trust, Hindu Undivided Family (HUF), or Society.

Before applying for an Import Export Code Registration, certain prerequisites must be fulfilled. The applicant firm, regardless of its type, must have a PAN, a bank account in the firm’s name, and a valid address. The DGFT may conduct a physical verification of the address upon issuance of the IEC. It is recommended to have the PAN, bank details, and firm details readily available when applying for the IEC.

Eligibility of Getting Import Export Licence

Any business entity, including sole proprietorships, partnerships, private limited companies, and charitable organizations involved in import and export operations in India, can register for an IEC, regardless of their size. However, it is important to note that an IEC Number is not mandatory for importing or exporting goods for personal use, if they are not connected with trade, manufacture, or agriculture. In such cases, where the import/export activities are purely for personal purposes, there is no requirement to have a formal business setup or obtain an Import Export Licence.

Benefits of Import Export Code (IEC)

The benefit of having an Import Export Code registration includes the following:

1. Business Expansion: Import Export Licence facilitates global market expansion, enabling businesses to offer their products or services internationally and achieve growth.
2. Access to Benefits: Companies with an IEC registration can avail various benefits from entities such as the DGFT, Export Promotion Council, and Customs, based on their import/export activities.
3. No Return Filing: Import Export Licence holders are not required to file any returns. Once the code is allotted, there is no need to follow any specific process to maintain its validity. Even for export transactions, there is no requirement to file returns with the DGFT.
4. Simple Processing: Obtaining an IEC code from the DGFT is a straightforward process that typically takes around 10 to 15 days after submitting the application. There is no need to provide evidence of any previous export or import activities to obtain the Import Export Licence.
5. No Renewal Needed: The Import Export Licence remains valid for the lifetime of the entity and does not require renewal. Once obtained, the code can be used for all export and import transactions without any time limitations.

Requirements in Import Export Code Registration

Import Export Code (IEC) is necessary in the following scenarios:

• Customs Clearance for Import: When an importer needs to clear their shipments through customs, the customs authorities require the Import Export Licence.
• Outward Remittance by Importer: When an importer sends money abroad through banks, the bank requires the Import Export Licence.
• Customs Port for Export: When an exporter needs to send their shipments through a customs port, the Import Export Licence is necessary.
• Inward Remittance by Exporter: When an exporter receives money in foreign currency directly into their bank account, the bank requires the Import Export Licence.

Documents required for Import Export Code Registration

The following documents are necessary for an Import Export Code Registration:

• PAN card of the company (not applicable for proprietors)
• PAN card and Aadhaar card of the applicant (or alternative identification documents such as a driving license, Aadhaar, or voter ID)
• Incorporation certificate or partnership deed
• Address proof (such as an electricity bill, rent agreement, or Sale Deed of the office location)
• Copy of cancelled cheque leaf or banker certificate confirming the current account in the company’s name.

Process of applying for Import Export Code (IEC)

The process for Import Export Code Registration is as follows:

• Consultation
• Documentation
• OTP Verification
• Online Application
• IE Code Generation

The online registration process for obtaining an IEC in India is a straightforward procedure that can be completed in a few simple steps. Here is a guide on Import Export Code Registration:

1. Visit the official website of the Directorate General of Foreign Trade (DGFT), which is the designated platform for IEC registration in India.
2. If you are a new user, click on the ‘Register’ button and provide your basic details such as name, email address, and phone number to create a new account.
3. Once registered, log in to the DGFT website using your registered email ID and password.
4. On the homepage, locate and click on the ‘Online IEC Application’ button, which will redirect you to the import export code application form.
5. Fill in the online IEC application form with accurate and complete information, including the name and address of the firm or individual, PAN number, bank account details, contact information, and other required documentation.
6. Make the payment for the import export code application fee using online payment methods such as internet banking, debit card, or credit card.
7. After filling in the application form, uploading the necessary documents, and making the payment, review the application thoroughly and click on the ‘Submit’ button.
8. Once you have submitted the IEC application, you can track the status of your application online. Upon approval, the IEC certificate will be issued and sent to your registered email ID.

By following these steps, you can complete the importer exporter code registration process online in India efficiently and conveniently.

Validity of the Import Export Code Registration

The IEC that includes a 10-digit code and which is required for importing and exporting goods from India, is issued by the DGFT (Director General of Foreign Trade) and remains valid throughout the entity’s lifetime. In other words, the Import Export Licence once obtained does not require any renewal.

Exemption of Import Export Code

The exemption of obtaining an Import Export Licence are as follows:

• Individuals engaged in personal import and export activities in India, which are not related to trade, agriculture, and manufacturing.
• Parties or individuals involved in import/export transactions with Nepal and Myanmar, where the total value of the single consignment does not exceed ₹25,000, via specific border areas such as Indo-Myanmar and China (through Namgaya Shipkila, Gunji, and Nathula ports).

NOTE – The exemption from obtaining an IEC Code, does not apply to the export of materials, organisms, special chemicals, equipment, and technologies.

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