What is Import Export Code Registration Overview
In this age of cut-throat competition, everyone wants to grow their business beyond the limits of the domestic market. However, doing business globally isn’t just a cup of tea for everyone. Before going global, you need to follow several procedures and laws in place and get different registration and license. IEC (Import Export Code) license is one of such prerequisite when you’re thinking of importing or exporting from India. IEC (Import Export Code) is required by anyone who is looking to kick-start his/her import/export business in the country. It is issued by the DGFT (Director General of Foreign Trade). IEC is a 10-digit code which has lifetime validity. Predominantly importers merchant cannot import goods without the Import Export Code and similarly, the exporter merchant cannot avail benefits from DGFT for the export scheme, etc. without IEC.
Process for Import Export Code Registration
The online IEC application form in the format Aayaat Niryaat Form no. 2A is filed with the Directorate General of Foreign Trade. Alternatively, it could also be done offline at the Regional office of DGFT.
All the required documents, including bank details and DSC, have to be submitted
Next, the Import Export code will be allotted and the application will be processed further
Once the documents and application are verified by the authorities, the import export license will be granted as a soft copy to the entity.
Documents Required For Import Export Code Registration
- Individual’s or Firm’s or Company’s copy of PAN Card
- Individual’s voter id or Aadhar card or passport copy
- Individual’s or company’s or firm’s cancel cheque copy of current bank account
- Copy of Rent Agreement or Electricity Bill Copy of the premise
Benefits Of Import Export Code Registration
- To Expand Business Globally
- To Avail Several Benefits
- Easy Processing and Compliance-free
- No need for renewal, Lifetime Validity
- No Returns Filing
FAQs On Import Export Code Registration
IEC Stands for IMPORTER EXPORTER CODE Legal Provisions As per section 7 of Foreign Trade (Development and Regulation) Act, 1992 Importer-Exporter Code Number – No person shall make any import or export except under an Importer-exporter Code Number granted by the Director General or the officer authorised by the Director General in this behalf, in accordance with the procedure specified in this behalf by the Director General.
A. Any bonafide person/ company starting a venture for International trade.Following categories of importers or exporters are exempted from obtaining IEC number:
No. IEC forms a primary document for recognition by Govt. of India as an Exporter/ Importer
On the basis of IEC License, companies can obtain various benefits on their exports/ imports from DGFT, Customs, and Export Promotion Council etc.
Only one IEC would be issued against a single PAN number. Any proprietor can have only one IEC number and in case there are more than one IECs allotted to a proprietor, the same may be surrendered to the Regional Office for cancellation.In case of more than one proprietorship firm belonging to one proprietor, they will be indicated as branch offices of the first firm.
Normally two working days for processing. For cancellation of IEC 15 working daysIn case the IEC is returned undelivered, what are the documents required for proving the genuineness of the firm?A. Information to Post Office, Proof of Address-Copy of ownership Title, Registered copy of Lease Deed, copy of Telephone Bill, Electricity Bill, Registered copy of Rent deed etc. are required to confirm about the genuineness of the address. Applicant may also be asked to attend interview before the IEC issuing officer if necessary.
No, IEC issued are dispatched by Speed Post to the address mentioned on the self addressed envelope enclosed with the application. Only Deficiency Letters along with Application form/Document will be delivered at the IEC counter to the authorized person/Applicant having the acknowledgement receipt. If Deficiency Letter is not collected within 5 days then it will be sent by post to the applicant.
No. Only 1 IEC is issued to a person/entity. So if more than 1 IEC code is issued, then the same should be surrendered to the Regional Office for cancellation.
IE Code is not a tax registration. However, certain customs duty may be levied depending on the product.
Anyone who is acting as sole proprietor of a business can obtain IE code Registration.
As trade is not possible without a valid IEC, the penalty levied may be the pay duty depending upon the quantum of the goods.
Yes, IEC number is reflected in all customs documents related to exports and imports.
No, the validity of IEC Registration is of a lifetime. Therefore there is no requirement to revalidate it.
No. IEC is a mandatory document for recognition by Govt. of India as Exporter / Importer of goods and services. However, if the value of goods is too low, the customs authorities may permit first export by imposing nominal charges which is highly unlikely to happen.
No. IEC is a mandatory document for recognition by Govt. of India as exporter/importer. However, if the value of goods is very low, the concerned customs officer may permit the first export (only one time) by imposing penal charges.
IE code can be cancelled by initiating a formal request to the DGFT online. On receipt of such intimation, the authorities will cancel it electronically.