FSSAI Full Form and Everything You Need to Know About It
26 Feb, 2025
A person wishing to start an import or export business in the country must have an Importer Exporter Code (IEC), a 10-digit code with a lifetime validity. It is issued by the Director-General of Foreign Trade (DGFT). Without this ten-digit IEC, neither importers nor exporters are eligible for crossing the border for business. This piece of content will provide a detailed guide on the IEC license generation process.
The below-mentioned steps need to be followed to apply for the IEC registration process:
The following documents are required for different types of companies or firms.
Proprietorship
Partnership Firm
Private Limited Company or LLP or Section 8 Company
Hindu Undivided Family (HUF)
Society or Trust
The IEC exemptions are mentioned below:
The following details include the circumstances where an IEC is required:
Let us look at the eligibility criteria for an IEC license:
The Importer Exporter code is valid for a lifetime and has no expiration date. As a result, updating, renewing, or applying for IEC Registration is not difficult. The registration is valid as long as the business is still operating or until it is canceled or given up. IEC Holder shall be responsible for updating the same as whenever a change takes place immediately, or at least, once in a year.
IEC is not needed for all GST-registered traders, according to the government's most recent circular. In each of these scenarios, the trader's PAN will be considered as a new IEC code for import and export purposes. If the products being imported or exported are just being utilized for personal, non-commercial purposes, the Importer Exporter Code is not required. Registered charitable organizations may export and import through the departments and ministries of the Government of India without needing an Import Export Code.
Some of the essential features of IEC registration are mentioned in the following details:
You can increase your business overseas through the export import code. Understand the need of Indian customers and foreign customers, and increase your business across the globe.
The Indian government assists the business owner to exporting goods from India. Therefore, having an IEC code makes it simple for exporters to get benefits from customs, DGFT export marketing programs, export promotion council, etc.
Based on the IEC Code, a company that engages in import & export activities makes use of government-provided fare assistance.
There are a lot of benefits of having an Exporter Importer Code. Here are some of them.
Because the IEC Code is necessary for both import and export operations, it enables the items to be sold on the global market. The IE code facilitates an Indian company's entry into the global market and creates opportunities for development and expansion.
Finding the IEC Code is a simple, hassle-free process that requires minimum paperwork submission.
In India, relatively few documents are needed to receive an IEC Code. The list of the paperwork needed for acquiring an import-export code is available here.
The IEC Code registration is good for as long as the company is in operation. As a result, updating, submitting, & renewing Importer Exporter Code registration are all without problems. The IEC registration is valid as long as the business is active or as long as it isn't canceled or given up. Update your IEC instantly if any changes happen in your business details or at least once in a year.
The import-export code's most fundamental provision is that you must give accurate information of goods. Transportation of illegal products and goods is prohibited under these criteria. So, illegal goods will automatically be restricted.
The IEC code provides significant advantages for both exporters and importers. The registered business enterprises will be eligible to receive advantages from Customs, the Export Promotion Council, or other agencies in the form of subsidies. Exporters can perform exports without paying taxes by submitting LUT under GST. If exports are made after paying taxes, the exporter may request a return of the tax amount paid.
In contrast to other tax registrations, carrying out an export or import does not need to meet any particular compliance requirements, such as the yearly filing or return filings. However, any change of the business or business details must be update as soon as it happens or at least once in a year- as the case may be.
Conclusion
Anyone wishing to begin an importer-exporter firm in the nation must obtain an IEC, which is declared by the Director General of Foreign Trade. The 10-digit IEC is valid for an unlimited period. Without the Importer Exporter Code license, merchants who are primarily importers are unable to import products. In contrast, merchants who are primarily exporters are unable to receive advantages from DGFT for the export plan.
A corporate entity must have an import and export code, which is a 10-digit unique identifier provided by India's Directorate General of Foreign Trade (DGFT), to import and export goods. The Import and Export Code aids in the expansion of the company on a worldwide scale. Visit our website Online Legal India to get assistance from our professionals on getting an IEC license.
FAQs
Q1. Can I get my IEC registration done online?
Yes, you can get your IEC registration done online through DGFT portal. You can contact Online Legal India to file your application flawlessly.
Q2. What is an IEC license?
A vital company identification number required for exporting from or importing in India is an Importer-Exporter Code (IEC). Unless explicitly exempted, no person can export or import without an IEC.
Q3. Can I start an import-export business without acquiring an IEC license?
No, nobody can import or export without this code. However, there are some exemptions. Such as:
Q4. Is the validity of an IEC license for a lifetime?
Yes, the validity of an IEC license is for a lifetime. However, you have to update your details as soon as any declaration is provided from the government or change from your businesses’ end. You should update your details at least once in a year.
Q5. Is the need for IEC registration product-based?
No, the need for IEC registration is not product-based. For any type of goods or services involved in export or import business require it.