Importer Exporter Code Registration (IEC)

A businessperson wishing to begin their import/export business in the country must get an Importer Exporter Code (IEC). The Director General of Foreign Trade (DGFT) issues the IEC and it is a unique 10-digit alphanumeric code that is valid for a lifetime. The Importer Exporter Code allows merchants who are primarily importers to import products, and merchants who are primarily exporters to receive advantages from DGFT for the import-export plan.

You must follow specific procedures and rules to receive the Import-Export code (IEC). You can obtain the IEC code from the DGFT headquarters once the requirements have been met. This article will provide you with a detailed guide on the IEC code registration process.

A Process to IEC Code Registration

Procedure for IEC code registration is discussed here:

Step 1: You need to visit the website of DGFT first for IEC Registration.

Step 2: Register by creating an account and providing your details.

Step 3: After registering, log in through the user ID and password.

Step 4: Click the ‘Apply for IEC’ option on the website dashboard.

Step 5: Then click on the ‘Start Fresh Application’ button.

Step 6: Put all the necessary and basic details of partner/director/proprietor/bank information/managing trustee, and other details and attach the digital signature certificate.

Step 7: After filing all the details and uploading the documents required, pay the IEC application fee online.

Step 8: You will receive a receipt of the payment after applying and download it for future purposes.

Step 9: You can track the application status online.

Step 10: After the IEC is issued, it will be sent to your email ID.

Step 11:  You can also download it from the DGFT website and select the ‘Print IEC’ button under the ‘IEC Profile Management’.

IEC Registration Fees

The government simply charges Rs. 500 for Import and Export Registration. In case of updating or modifying your IEC details, you will need to pay an additional fee of Rs. 200. By visiting the DGFT website and paying Rs. 500 for the application fee, you can get an IEC on your own. But if you face any complications when applying for it on your own, you can contact legal professionals or visit Online Legal India for assistance with the IEC Registration Process.

Documents Required for the IEC Registration Process

The following documents are required for the IEC registration:

• Pan Card copy of Individual or Company.
• Voter ID, Aadhaar card, or passport copy of the individual.
• Proof of establishment, registration, or incorporation of the partnership, proprietorship firm, society, or company. 
• A self-addressed envelope to deliver the IEC certificate by registered post.
• Individual’s or firm’s canceled cheques copies of current bank accounts
• Proof of address of business premise (sale deed, lease deed, or utility bills)

How to Download IEC?

Here are the steps to follow when downloading an IEC:

• Visit the website of DGFT and log in using your credentials.
• Go to the ‘Services’ tab, choose the ‘IEC’ and click on the ‘Manage IEC’ button.
• Verify your details and select ‘Print IEC’ to download your certificate in a PDF format.

Why Do Businesses Need Importer Exporter Codes?

Businesses have a fantastic opportunity to reach the international market by exporting and importing the goods and services they provide. The IEC is crucial when entering the international market because it helps the firm grow and thrive.

• Lifetime Validity

Import Export code has lifetime validity as long as the company is operating. As a result, updating, filing, and renewing IEC registration is not required. The IEC registration is valid as long as the business is active or it is not canceled or given up.     

• Unlock the International Market

Since the IEC is a prerequisite for import and export operations, it enables the products to enter the global market. The IE code facilitates an Indian company’s entry into the international market and creates opportunities for growth and expansion.   

• Online Registration

Finding the IEC is a hassle-free, entirely online process that requires less paperwork submission.   

• Reduces Illegal Goods Transportation

You must offer accurate information and the simplest criterion for the Import-Export code. It is possible to receive an IEC without the required information. Transportation of illegal products is prohibited by this criterion.  

• International Business Compliance

The person carrying out import or export, unlike other tax registrations, is not required to satisfy any particular compliance obligation, such as the yearly filing or the return filings.  

Who can apply for an IEC?

IEC is important for all businesses and individuals to engage in global trade. Here is the information on who can apply for the Import Export Code:

• Sole proprietorship
• Partnerships
• Individuals
• Private limited company
• Public limited company
• Trusts, etc.

If any company, organization or business does not have foreign trades, needs not have IEC registration.

Where Import Export Code Is Required?

• Customs Officials: The customs officials require it when an importer has to clear his shipments via customs.
• Bank (Import): The bank requires the code when an importer sends money abroad through banks.
• Customs Port: The customs port needs it when an exporter has to send his shipments. 
• Bank (Export): The bank demands it when an exporter receives foreign currency payments directly into his bank account.

Where Import Export Code is Not Mandatory?          

The latest notice issued by the government states that IEC is not necessary for all traders who are registered under GST. The PAN can be replaced as the new IEC code for import and export purposes. Any goods imported or exported for personal reasons and aren’t used for commercial purposes require no IEC.

Benefits of IEC Registration

Some benefits of IEC Registration include:

• Globalized Business Access

IEC makes it easier for any business to take their products or services to the international market and grow their business. It encourages businesses to participate in the international markets to expand their reach. The importers can also import goods or products from foreign market to the native country. So, it helps globalization of business.

• Easy Processing

Obtaining the IEC is an easy process from the DGFT in 10 to 15 days after submitting the application form. You don’t need to provide any evidence or proof of any import or export to get the IEC code.

• No Return Filing

You are not required to file any returns in IEC. It doesn’t need further process to sustain its validity when allotted. There is no requirement for filing any returns in the export transactions with DGFT.

• No Renewal Needed

The IEC is valid for a lifetime of a business and no renewal is needed for it. After obtaining the IEC, the business can use it against all import and export transactions.

The IEC must be obtained for anybody has export or import businesses. It offers numerous advantages for business expansion outside India. You must fulfill the requirement for IEC code registration because of its necessity in the import-export business. It is a necessary document when expanding business into the international market or vice versa.

This piece of content gave a detailed explanation of the IEC registration process along with its benefits. Visit our website Online Legal India and get assistance in your IEC registration process, quickly and hassle-free.