Import Export Code

Key Features of Import Export Code (IEC)

1. IEC is a unique 10-digit number assigned to a business for the export and import of goods.

2. After GST was introduced, the IEC number is the same as the PAN number of the firm.

3. Businesses in the service sector are generally exempted from IEC.

4. It is issued by the Directorate General of Foreign Trade (DGFT).

5. IEC registration is mandatory before a business starts the import/export of goods.

6. Both GST registration and IEC code are required for customs clearance.

7. Without the IEC code, the goods can be stuck at the port and the business will have to bear demurrage charges.

8. Lifetime validity

Importance of Import Export Code (IEC)

The IEC code lets businesses enter the global markets. They can indulge in the export and import of goods expanding their market reach. Below are some of the benefits of having an IEC code.

1. Completely digital process – The process to obtain the IEC code is completely digital and needs minimum documentation.

2. Minimum documents required – The IEC code requires very few documents for the application.

3. Opportunities in international markets – For businesses, it opens up doors for exports and imports in the international markets. With the IEC code, businesses can smoothly expand their operations globally.

4. Minimizes illegal goods trading – The IEC code is given to businesses that provide authentic government-approved information. This reduces the chances of unauthorized/illegal businesses being transported outside the country or into the country.

5. Lifetime validity – There is no need to update, re-apply, or renew the IEC code. Once a business gets an IEC code, it is valid until the business exists.

6. Compliance – There are no compliance requirements for the IEC code. There is no need for regular/annual filings or reports to be submitted.

7. Several Benefits – With an IEC code, business entities get subsidies from customs, the Export Promotion Council, and other authorities. The exporters can get an exemption from taxes, with LUT filing under GST. If they have already paid taxes, they can claim a refund.

Type of Firms that Need to Obtain an IEC

1. Partnership firm

2. Trust

3. Hindu Undivided Family (HUF)

4. Limited Liability Partnership (LLP)

5. Proprietorship Firm

6. Society

7. Limited Company

Eligibility criteria for Application to get IEC

1. Registering on the DGFT portal is mandatory. Valid login credentials are needed after registration.

2. In order to apply for IEC, the firm should be a partnership firm, Trust, Hindu Undivided Family, Limited liability partnership, Proprietorship firm, Society, or Limited company.

4. A bank account in the name of the business and a valid address is needed before applying for IEC.

Documents needed for Application to get IEC

1. Proof of incorporation/establishment/registration: The following type of Firms need to submit the establishment/incorporation/registration certificate:

a) Registered Society

b) Partnership

c) HUF

d) Trust

e) Other

2. Proof of Address: Any of the following documents can be submitted as proof of address:

a) Electricity bill

b) Telephone landline bill

c) Sale Deed

d) Rent Agreement

e) Mobile, postpaid bill

f) MoU

g) Partnership deed

h) Lease dee

i) Other acceptable documents (for proprietorship only):

• Passport
• Voter id
• Aadhar card

In case the firm does not have address proof in its name, a no objection certificate (NOC) from the owner of the property has to be submitted. The NOC along with the address proof has to be submitted in one single file in pdf format.

3.Proof of the Firm’s Bank Account –

• Bank Certificate
• Cancelled Cheque
• An active bank account

4. Aadhaar card or an active DSC of a member of the firm for submission.

The Application Process for IEC (Import Export Code)

1. Log in to the official DGFT website. Go to the ‘Services’ tab on the homepage and select the ‘IEC Profile Management’ option from the list.

2. It will take you to a new page. Click on the ‘Apply for IEC’ option.

3. Post that, Click on the ‘Register’ option. Fill in the required details and click on the ‘Send OTP’ button.

4. Input the OTP and click on the ‘Register’ button.

5. After successfully validating the OTP, the applicant will get a notification for the temporary password, which they can change after logging into the DGFT website.

6. Post registering on the DGFT website, log in to the website by entering the assigned user name and password.

7. Post login, click on “Apply for IEC” on the Dashboard. Click on the “Start Fresh Application” button or the “Proceed with Existing Application” button if the User has already saved a draft application.

8. Fill out the application form (ANF 2A format), and fill in the details in the General Information Section:

a) Select the nature of the Firm

b) Enter the Firm’s Name

c) Enter the firm’s PAN Details

d) Select the Preferred Activities of the firm

e) Enter the corporate entity number (CIN) of the firm

g) Enter the Firm’s Mobile Number

h) Firm’s Mail ID

i) Enter the firm’s address

j) Attach the address proof of the Firm

k) Fill in the details in the “Details of Proprietor/Partner/Director/Karta/Managing Trustee” Section

l) Fill in the details in the “Bank Account Details” Section

m) Fill in the details in the “Other Details (Exports Sectors preferred)” Section.

9. Accept the terms and conditions by ticking the checkbox.

10. Check the Application Summary and click on the Sign button to sign the Application using a digital signature certificate or Aadhaar.

11. Proceed to confirm and make the payment against the Application.

12. After the payment is successful, the Page shall be redirected to the DGFT Website. It will display the receipt and then the applicant can also download the ticket.