Import and Export Code
In today's competitive world, many businesses want to expand beyond their domestic markets. Doing business globally is easier than ever thanks to technology and the internet. However, before you can start exporting or importing goods, you need to follow certain procedures and laws, and obtain various registrations and licenses. One of these requirements is the IEC (Import Export Code) license.
The IEC license is required for anyone who wants to start an import/export business in India. It is issued by the Director General of Foreign Trade (DGFT) and is a 10-digit code that is valid for life. It remains valid until the business ceases to exist or the registration is revoked or surrendered. Unlike other tax registrations, such as GST and PF registration, there are no annual filings or compliance requirements for IEC registration.
Therefore, it is recommended that all exporters and importers obtain an IEC license after incorporation. It is a one-time process with no additional compliance requirements. Without an IEC license, importers cannot import goods and exporters cannot take advantage of DGFT export schemes.
- A copy of your PAN card (individual, firm, or company)
- A copy of your voter ID, Aadhaar card, or passport (proprietor)
- Proof of establishment, incorporation, or registration of your business (partnership, society, proprietorship firm, company, HUF, etc.)
- Proof of address of your business premises (sale deed, lease deed, rent agreement, or utility bill)
- Canceled check copies of your current bank accounts (individual, company, or firm)
- A self-addressed envelope for delivery of your IEC certificate by registered post
Procedure for IEC Registration
- Go to the DGFT website.
- Click on the ‘Services’ tab on the homepage.
- Select the ‘IEC Profile Management’ option from the drop-down list.
- A new page will open. Click on the ‘Apply for IEC’ option on the page.
- Click on the ‘Register’ option. Enter the required details and click on the ‘Sent OTP’ button.
- Enter the OTP and click on the ‘Register’ button.
- Upon successful validation of the OTP, you will receive a notification containing the temporary password which you can change after logging into the DGFT website.
- After registering on the DGFT website, login to the website by entering the user name and password.
- Click on the ‘Apply for IEC’ option on the DGFT website dashboard.
- Click on the ‘Start Fresh Application’ button.
- Enter the general information, details of proprietor/partner/director/Karta/managing trustee, bank information, other details, attach Digital Signature Certificate (DSC) and make the payment.
- After successful payment, it will be redirected to the DGFT website. The receipt will be displayed. Download the receipt for future reference.
- The IEC Certificate will be sent in the email. It can be downloaded after logging in to the DGFT website and clicking the ‘Print IEC’ option under the ‘IEC Profile Management’.
Once you've successfully obtained your IEC registration, you're all set to kickstart your export journey.
Benefits of IEC Registration
An IEC (Import Export Code) registration is a must for businesses that want to export or import goods. With an IEC, you can reach a global market and grow your business exponentially.
Cases where Import-Export Code (IEC) is not mandatory
- Expand your business globally: IEC registration is a must for businesses that want to export or import goods. With an IEC, you can reach a global market and grow your business exponentially.
- Avail various benefits: IEC-registered businesses can avail a number of benefits from the DGFT, Export Promotion Council, Customs, etc., such as subsidies, tax refunds, and other financial assistance.
- No return filing required: IEC-registered businesses do not need to file any returns. Once you are allotted an IEC, there is no need to follow any process to maintain its validity.
- Easy processing: Obtaining an IEC code from the DGFT is a fairly easy process. It takes around 10-15 days after submitting the application. There is no need to provide proof of any export or import to get an IEC code.
- Lifetime validity: IEC codes are valid for the lifetime of a business and do not require renewal. Once you obtain an IEC code, you can use it for all your export and import transactions.
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.
- Traders registered under GST: IEC is not mandatory for traders who are registered under the Goods and Services Tax (GST). Their PAN number will be used as their IEC code instead.
- Goods exported or imported for personal use: IEC is not mandatory for goods that are exported or imported for personal use and not for commercial purposes.
- Export/import by government departments and ministries and notified charitable institutions: Government departments and ministries, as well as notified charitable institutions, don't need an IEC.
Additional cases where IEC is not mandatory:
- Importing goods for personal use from Nepal, Myanmar, and China: You don't need an IEC to import goods for personal use from Nepal, Myanmar, and China, as long as the CIF value of a single consignment is less than Rs. 25,000. However, you do need an IEC to import special chemicals, organisms, materials, equipment, and technologies (SCOMET) as listed in Appendix-3, Schedule 2 of ITC (HS).
- Importing goods by courier: You don't need an IEC to import goods by courier, as long as the CIF value of a single consignment is less than Rs. 1 lakh.
- Importing gifts: You don't need an IEC to import gifts, as long as the value of the gift is less than Rs. 50,000.
How Ecfile can help you get IEC registration easily
- Convenience: We make the IEC registration process easy and convenient for you. You can complete the entire process online, from the comfort of your home or office.
- Expertise: Our team of experienced professionals has a deep understanding of the IEC registration process. We can help you avoid any common mistakes and ensure that your application is processed smoothly.
- Speed: We understand the importance of getting your IEC certificate quickly. We will work with you to expedite the process as much as possible.
- Affordability: We offer our IEC registration service at a competitive price.
If you are interested in getting IEC registration through Ecfile, please visit our website or contact us for more information. We would be happy to help you get started.