What is Import-Export Code (IEC) #
Import-Export Code (IEC) registration is a mandatory requirement for any business or individual that wishes to engage in the import or export of goods or services from India. The IEC is a 10-digit unique code issued by the Director General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, Government of India. In this article, we will discuss the various aspects of IEC registration, including the need for IEC registration, the procedure for obtaining IEC registration, and the benefits of having an IEC.
Need for IEC registration #
The IEC registration is mandatory for any individual or entity that wishes to engage in the import or export of goods or services from India. The IEC is a unique code that is used to track all import and export transactions in India. It is a legal requirement under the Foreign Trade Policy of the Government of India, and failure to obtain an IEC can result in legal action and penalties.
Procedure for obtaining IEC registration #
The procedure for obtaining IEC registration is straightforward and can be completed online. The following is a step-by-step guide to the IEC registration process:
Step 1: Visit the DGFT website
The first step in the IEC registration process is to visit the DGFT website at https://dgft.gov.in. Once on the website, click on the ‘Online IEC Application’ link on the homepage.
Step 2: Fill out the application form
The next step is to fill out the IEC application form. The form requires the applicant to provide details such as their name, address, PAN number, bank account details, and other relevant information.
Step 3: Submit the application form
Once the application form is complete, the applicant must submit the form online. The applicant will receive an application number after the form is submitted.
Step 4: Pay the application fee
The next step is to pay the application fee. The application fee can be paid online using a debit or credit card or through net banking.
Step 5: Submit the required documents
After paying the application fee, the applicant must submit the required documents, including a copy of their PAN card, passport-sized photographs, and a cancelled cheque from their bank account.
Step 6: Receive the IEC
Once the application and documents are submitted, the DGFT will process the application and issue the IEC within 2-3 working days. The IEC will be sent to the applicant via email.
Benefits of having an IEC #
Having an IEC registration provides several benefits to individuals and businesses engaged in the import or export of goods or services. The following are some of the benefits of having an IEC:
- Eligibility for export promotion schemes – One of the primary benefits of having an IEC is that it makes the holder eligible for various export promotion schemes such as the Merchandise Exports from India Scheme (MEIS), Service Exports from India Scheme (SEIS), and the Export Promotion Capital Goods (EPCG) Scheme. These schemes provide financial incentives to exporters, making them more competitive in the international market.
- Easy access to government benefits – Having an IEC also provides easy access to various government benefits such as import subsidies, duty drawbacks, and tax exemptions. These benefits can significantly reduce the cost of importing or exporting goods, making it more profitable for businesses.
- Global reach – An IEC registration also provides businesses with a global reach, as it enables them to engage in import and export activities with countries worldwide. This helps businesses to expand their market reach and explore new business opportunities.
- Increased credibility – Having an IEC registration also increases the credibility of the business, as it is a requirement for engaging in international trade. The IEC code is used by customs officials to track and monitor import and export transactions, and having an IEC code signals to customers and partners that the business is a legitimate and trustworthy player in the global trade arena.
Documents required for IEC registration #
The following are the documents required for IEC registration:
- PAN Card
- Bank Account details
- Cancelled cheque from the bank account
- Passport size photograph
- Proof of address, such as electricity bill or telephone bill
- In case of a company, Memorandum of Association (MOA) and Articles of Association (AOA) are also required
Validity and Renewal of IEC #
An IEC is valid for a lifetime, and there is no need to renew it. However, if there is a change in the address, name, or any other details, the IEC holder must update the information with the DGFT. If an IEC holder fails to update the information or if the IEC is misused, it can be cancelled or suspended by the DGFT.
Common errors in IEC registration #
The following are some of the common errors that applicants make during the IEC registration process:
- Incorrect or incomplete information in the application form
- Mismatch between the name and address mentioned in the application form and the PAN card
- Not submitting the required documents
- Payment of incorrect fees
- Incorrect category selection
To avoid these errors, applicants must double-check all the information they provide in the application form and ensure that they submit all the required documents.
Conclusion #
IEC registration is a mandatory requirement for any individual or entity that wishes to engage in the import or export of goods or services from India. The IEC is a unique code that is used to track all import and export transactions in India, and failure to obtain an IEC can result in legal action and penalties. The procedure for obtaining an IEC is straightforward, and it can be completed online. Having an IEC registration provides several benefits to individuals and businesses engaged in the import or export of goods or services, such as eligibility for export promotion schemes, easy access to government benefits, global reach, and increased credibility. To ensure a smooth IEC registration process, applicants must ensure that they provide accurate and complete information and submit all the required documents.