Import Export Code

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Import Export Code

Import Export Code (IEC): How to Apply and Its Advantages

Everyone wants to expand their firm outside of the domestic market in this era of fierce competition. The development of the internet and technology has made doing business internationally easier in recent years. However, before expanding your business internationally, you must adhere to a number of rules and regulations and obtain the necessary licenses and registrations. One of these requirements when considering imports into or exports from India is an IEC (Import Export Code) authorization. Another name for it is Importer-Exporter Code.

Anyone wishing to launch an import/export firm in the nation must have an IEC (Import Export Code). The Director General of Foreign Trade, or DGFT, is the one who issues it. The 10-digit IEC code is valid for a lifetime. Predominantly importer merchants cannot import products without the Import Export Code and similarly, the exporter merchant cannot avail benefits from DGFT for the export plan, etc., without IEC

Conditions in which IEC is necessary

1. The customs officials require it when an importer needs to clear his shipments from customs.
2. The bank requires the money that an importer sends overseas through banks.
3. The customs port requires it when an exporter has to transmit his shipments.
4. The bank requires it when an exporter receives foreign cash immediately into his bank account.

The advantages of being registered with IEC

1.Business expansion IEC helps you open up the world market for your goods or services and expand your company.

2.Utilizing a number of advantages
On the basis of their IEC registration, the companies were able to receive various benefits related to their imports and exports from the DGFT, Export Promotion Council, Customs, etc.

3. No filing of returns
IEC doesn't require any returns to be filed. Once granted, there is no need to adhere to any kind of procedure in order to maintain its legality. It is not necessary to file any returns with DGFT, even for export transactions.

4. Simple processing
Getting an IEC code from the DGFT is quite simple and takes 10 to 15 days after the application is submitted. To obtain an IEC code, no documentation of imports or exports is required.

5. No need to renew
An entity's IEC code is valid for its whole existence and doesn't need to be renewed. Once acquired, an entity may use it to counter all import and export transactions.

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Documents Required

PAN card copies belonging to an individual, business, or organization.

a copy of the proprietor's passport, Aadhaar card, or voter ID.

Evidence of the partnership, society, proprietorship firm, company, HUF, etc.'s formation, incorporation, or registration.

Evidence of the business's address, such as utility bills (phone, mobile, or energy bills), lease or sale agreements, or rent agreements.

Check copies of current bank accounts are cancelled by individuals, businesses, or firms.

A self-addressed envelope for registered mail delivery of the IEC certificate.

Procedures for registering an import/export code, or IEC

1. Go to the website of DGFT.
2. On the homepage, select the "Services" tab.
3. From the drop-down menu, choose "IEC Profile Management."
4. A fresh tab will appear. On the site, select the "Apply for IEC" option.
5. Select the "Register" menu item. Click "Sent OTP" after entering the necessary information.
6. Click "Register" after entering the OTP.
7. After the OTP has been successfully validated, you will be notified with a temporary password that you can modify by login into the DGFT website.
8. Enter your user name and password to access the DGFT website after registration.
9. On the dashboard of the DGFT website, select the "Apply for IEC" option.
10. Press the button labeled "Start Fresh Application."

11. Make the payment after entering the general information, bank details, proprietor/partner/director/Karta/managing trustee details, and other details. Attach the Digital Signature Certificate (DSC).
12. The DGFT website will be accessed upon a successful payment. It will show the receipt. Save the receipt on your computer for later use.
13. The email will contain the IEC Certificate. After signing in to the DGFT website and selecting the "Print IEC" option under "IEC Profile Management," it is available for download.

Situations in which the Import-Export Code (IEC) is not required

IEC is not required for all traders registered under GST, per the most recent government circular. In each of these situations, the trader's PAN will be interpreted as a new IEC code for import and export purposes. If the products are being imported or exported for personal use and are not being used for any commercial purpose, the Import Export Code (IEC) does not need to be taken. It is not necessary for Notified Charitable Institutions and Government of India Departments and Ministries to obtain an Import Export Code in order to export or import.

Disclaimer: All information presented here is intended only for informational purposes. Using the website or its contents does not establish a lawyer-client relationship. Legal or professional advice is not provided by the content on this website. It should not be utilized for such purposes or as a replacement for legal counsel from a state-licensed attorney.

Frequently Asked Questions (FAQs)

Is IEC required?

Indeed. When importing into or exporting from India, an Importer-Exporter Code (IEC) is required. For a company engaged in import/export, it is an important business identity number. Unless otherwise exempt, a person or entity cannot import or export without first obtaining an IEC. IEC is not required for exporting services, nevertheless, unless the service provider is benefiting from the Foreign Trade Policy.

What is the turnaround time for the IEC code?

IEC will be automatically generated after the online application has been filed with the required paperwork and the necessary payments paid. An applicant will receive the IEC Certificate via email from the DGFT.

Are IECs available to individuals?

Yes, anyone operating as a business owner is eligible to register with the IEC. When applying for IEC registration, individuals may use their own name or the name of their business.

How can my IEC certificate be printed?

Your IEC certificate can be printed using the procedure below:

1. Go to the website of DGFT.

2. Click on the ‘Services’ tab on the homepage.

3. From the drop-down menu, choose "IEC Profile Management."

4. A fresh page will be displayed. On the page, select the "Print IEC" option.

5. Click "Print IEC" after confirming your information. Your IEC certificate can be printed using the procedure below:

Should I make a yearly update to my IEC profile?

Indeed. Annual updates to the IEC profile are required. The IEC profile will be deactivated if it is not updated. After a successful update, a deactivated IEC can be reactivated. Reactivation is contingent on the need that no other measures be taken in violation of any Foreign Trade Policy restrictions.

Does submitting an application for IEC need a Digital Signature Certificate (DSC)?

It is not required to have a Digital Signature Certificate (DSC) in order to apply for an IEC. Aadhaar authentication can be used to sign the IEC application. To improve the IEC issuance and modification procedures, DSC was added to the IEC.