Importer Exporter Code Registration
IEC application approval within two days
Globalize your business. Apply anywhere in India using IEC code
IEC Code Registration - Overview
Import Export Code (IEC) is a 10- digit code required for import and export transactions in India. It is issued by the DGFT, Ministry of Commerce and does not require filing or renewal. Consumers need IEC to clear customs and make payments to foreign banks, while exporters need IEC to deliver goods and receive payments.
Benefits of IEC Code
The Import Export Code (IEC) is a crucial requirement for businesses involved in international trade in India. Here are the key benefits of obtaining an IEC Code:
1. Legal Requirement
- An IEC Code is mandatory for any business looking to engage in import or export activities, ensuring compliance with Indian trade regulations.
2. Access to International Markets
- With an IEC Code, businesses can expand their reach and sell products to global markets, opening up new business opportunities.
3. Simplified Trade Processes
- The IEC streamlines various trade processes, making it easier to clear customs and complete import-export transactions efficiently.
4. No Renewal Requirement
- Unlike many licenses, the IEC Code does not require renewal, allowing businesses to focus on operations without the concern of expiry.
5. Bank Transactions
- An IEC Code is often required for opening a foreign currency account with banks, facilitating smoother international financial transactions.
6. Benefits from Government Schemes
- Registered businesses can access various government incentives, subsidies, and support schemes aimed at promoting exports.
7. Credibility and Trust
- Having an IEC Code enhances a business’s credibility in the eyes of international partners, suppliers, and customers, fostering trust in trade relationships.
8. Participation in Trade Shows
- Businesses with an IEC Code can participate in international trade fairs and exhibitions, providing exposure and networking opportunities.
9. Import Benefits
- It allows businesses to import goods without any hassle, enabling access to quality raw materials and products from global suppliers.
10. Flexibility in Operations
- Businesses can import and export a wide range of goods, giving them flexibility in product offerings and market strategies.
Situations Where IEC Code Is Required
An Import Export Code (IEC) is essential for various situations involving international trade. Here are some specific scenarios where an IEC Code is required:
1. Importing Goods
- Customs Clearance: Businesses need an IEC Code to clear customs when importing goods into India. It’s necessary for submitting import documents.
2. Exporting Goods
- Shipping Products: An IEC Code is mandatory for exporting goods from India to foreign countries, ensuring compliance with trade regulations.
3. Opening a Foreign Currency Account
- Bank Transactions: Businesses require an IEC Code to open a foreign currency account with banks, which is essential for receiving payments from international clients.
4. Dealing with Freight Forwarders
- Logistics and Shipping: Freight forwarders often require the IEC Code for documentation and to facilitate shipping processes.
5. Participating in Trade Fairs
- International Trade Events: Businesses must have an IEC Code to participate in international trade fairs and exhibitions, showcasing their products to a global audience.
6. Importing Services
- Service-Based Imports: Companies importing services, such as consultancy or software, need an IEC Code to comply with regulations.
7. Applying for Export Incentives
- Government Schemes: To benefit from various export promotion schemes and incentives provided by the government, having an IEC Code is a prerequisite.
8. Engaging in E-commerce
- Online Exports: E-commerce businesses that sell products internationally require an IEC Code for smooth operations and compliance.
9. Sending Gifts or Samples
- Shipping Samples: Even for sending samples or gifts to foreign clients, an IEC Code may be necessary for customs clearance.
Step-by-Step Process to Register for IEC License Online
1. Visit the DGFT Website
- Go to the official website of the Directorate General of Foreign Trade (DGFT): dgft.gov.in.
2. Create a User Account
- Click on “Login” and select “Register” to create a new user account. Fill in the required details like your email ID and mobile number.
3. Verify Your Account
- After registration, you will receive an OTP (One-Time Password) on your registered mobile number. Verify your account using the OTP.
4. Log in to Your Account
- Log in to your DGFT account with your credentials.
5. Navigate to IEC Application
- Once logged in, go to the “IEC” section and select “Apply for IEC.”
6. Fill Out the Application Form
- Complete the online application form with accurate details. This includes:
- Applicant’s name
- PAN number (Permanent Account Number)
- Address and contact details
- Type of organization (individual, partnership, company, etc.)
7. Upload Required Documents
Prepare and upload the following documents:
- PAN Card: A copy of the applicant’s PAN.
- Address Proof: Utility bills, rental agreements, etc.
- Bank Account Statement: A canceled cheque or bank statement showing the account details.
- Photograph: Passport-sized photo of the applicant.
8. Pay the Application Fee
- Pay the applicable fee online through the provided payment gateway. The fee can vary, so check the current fee structure on the DGFT website.
9. Submit the Application
- Review all entered details and documents. If everything is correct, submit the application.
10. Track Your Application
- After submission, you can track the status of your application through the DGFT portal using the application reference number provided.
11. Receive Your IEC Code
- Upon successful verification, your IEC Code will be issued and sent to you via email. You can also download it from the DGFT portal.
Glossary of Terms
1.Importer Exporter Code (IEC): A 10-digit code issued by the Directorate General of Foreign Trade (DGFT) in India, required for businesses involved in international trade.
DGFT: Directorate General of Foreign Trade, the Indian government authority responsible for regulating and facilitating foreign trade in India.
Export: The process of sending goods or services from one country to another for sale or trade.
Import: The process of bringing goods or services into a country from abroad for sale or use.
Customs Clearance: The process of passing goods through customs so they can enter or leave a country, often involving the payment of duties and taxes.
PAN (Permanent Account Number): A unique identifier issued by the Income Tax Department of India, required for various financial transactions and tax purposes.
E-commerce: Commercial transactions conducted electronically on the internet, which may also involve international trade.
Freight Forwarder: A company or individual that arranges the logistics of transporting goods on behalf of the exporter or importer.
Shipping Bill: A document filed by an exporter to customs, providing details of the goods being exported, used for clearance.
Bill of Lading: A legal document between the shipper and carrier detailing the type, quantity, and destination of the goods being shipped.
Certificate of Origin: A document used in international trade to certify that the goods in a particular shipment are wholly obtained, produced, or manufactured in a specific country.
SRO (Self-Regulatory Organization): Organizations that have the authority to create and enforce industry standards, often used in the context of trade.
Trade Fair: An exhibition where businesses showcase and demonstrate their products and services, often attended by international buyers.
HSN Code (Harmonized System of Nomenclature): A standardized numerical method of classifying traded products, used for customs and trade purposes.
Export Promotion Schemes: Government initiatives designed to support and encourage exporters through incentives, financial aid, and reduced compliance costs.
Foreign Currency Account: A bank account that allows businesses to hold and transact in foreign currencies, often required for international trade.
NOC (No Objection Certificate): A legal document issued by a competent authority, stating that they have no objection to the details mentioned in the document.
Incoterms: International Commercial Terms, a set of rules that define the responsibilities of buyers and sellers in international transactions.
Re-export: The process of exporting goods that were previously imported into the country.
International Trade: The exchange of goods and services between countries, governed by trade agreements and regulations.
Documents Required for Import Export Code Registration
PAN Card
- A copy of the Permanent Account Number (PAN) card of the applicant or business entity.
Address Proof
- Utility bills (electricity, water, gas, etc.)
- Lease agreement or property ownership documents.
- Any government-issued document that verifies the business address.
Bank Account Statement
- A canceled cheque or bank statement that shows the name of the business and the bank account details.
Identity Proof
- A government-issued identity proof of the applicant (Aadhar card, passport, voter ID, etc.).
Photograph
- Passport-sized photograph of the applicant.
Business Registration Documents
- Partnership deed (for partnerships).
- Certificate of incorporation (for companies).
- Any relevant registration certificates depending on the business structure.
Digital Signature
- A digital signature certificate may be required for online submission, particularly for companies.
FAQs on Import Export Code
The Import Export Code (IEC) is a 10-digit unique identification number issued by the Directorate General of Foreign Trade (DGFT) in India. It is required for businesses involved in importing or exporting goods.
Any individual or entity looking to engage in import or export activities in India must obtain an IEC. This includes manufacturers, traders, service providers, and e-commerce businesses.
You can apply for an IEC online through the DGFT website by creating an account, filling out the application form, and submitting the required documents along with the application fee.
Common documents include:
- PAN card of the applicant
- Address proof (utility bills, lease agreements)
- Bank account statement or canceled cheque
- Identity proof (Aadhar card, passport)
- Photograph of the applicant
- Business registration documents (if applicable)
Yes, there is a nominal fee for obtaining an IEC, which varies based on the type of applicant (individual or company).
The processing time for an IEC application is usually around 3 to 7 working days, provided all documents are in order.
No, the IEC does not require renewal. Once issued, it remains valid for a lifetime unless it is canceled or surrendered.
No, each business entity must obtain its own IEC. However, a single IEC can be used for multiple products and export or import activities under the same entity.
If your application is rejected, you will receive a reason for the rejection. You can rectify the issues and reapply for the IEC.
Yes, businesses providing services that involve cross-border transactions (like consultancy, software, etc.) also need an IEC.