IEC (Import Export Code) is a 10 digit code that is issued by DGFT (Directorate General of foreign trade), Ministry of commerce. It is a registration required to import-export goods and services from India. The IE (Import-Export) Code is valid for a lifetime. It is the very first step before doing any import-export business.
The IEC (Import Export Code) application is to be made by the registered head office of the applicant and apply to the nearest regional authority of DGFT (Directorate General of Foreign Trade). It is mandatory for all imports to mention their IE (Import export) code while clearing customs when their goods and services arrive in India. Moreover, the Reserve Bank of India has made it compulsory for all traders to mention their IE Code while making a payment to the foreign bank account. Therefore, IEC (Import export code) is required for everyone involved in import-export in India)
A single IEC (Import Export Code) would be issued against a single PAN number. Also, a single proprietor can have a single IEC (Import-export code) and if by any circumstances there is more than one IEC allotted to a proprietor, and then it must be surrendered to the regional office for cancellation. In case an IEC is lost or misplaced then you can request the issuing authority to grant a duplicate copy of IEC (Import- Export Code) and the same must be accompanied by an affidavit duly signed and notified at the authority or the nearest regional office. Once issued IE code can be used by the entity throughout its existence and does not require any renewal.
If Sole proprietors, private limited company or partnership firms are engaged in the import-export business then they need to have an Import-export code mandatorily. All the sellers need to register for IEC irrespective of the size. However, it is not required when a person is importing or exporting goods for personal use, which is not connected with manufacture, trade or agriculture. In addition to this, government ministries and certain charitable organizations can also import and export goods without having IEC Registration.
Business development: IEC (Import-Export Code) helps you to grow your business to the worldwide market and helps you to develop your organization as per your expectations and requirements.
No filling of returns required: One you have applied for IEC Registration, you don’t need to file any return. Once you get your registration done, there is not any necessity to follow any kind of procedures for supporting its legitimacy and also no need for documenting any profits with DGFT also.
Simple processing: It is a simple process to acquire IEC (Import-export code) from the DGFT (Directorate General of foreign trade) within a period of 10-15 days after submitting the application.
No need for renewal: Once allotted IEC (Import-Export Code) is valid for a lifetime and requires no renewal. After it is acquired it could be utilized by a substance against all fare and import exchanges.
PAN card of the applicant
Address proof of business premises
Details of Directors/partners
A digital signature of the applicant
Canceled cheque/ Bank certificate bearing applicant entity name
Passport size photograph
Step1: You need to prepare an application form in the specified format i.e. Aayaat Niryaat Form No. 2A format.
Step2: Fill the application form with the respective Regional Office of DGFT (Directorate General of foreign trade.
Step3: Secondly, you need to prepare documents required with respect to your id & legal entity, address proof of your bank details and the certificate in respect of ANF2A.
Step4: Once you are completed with your application, you need to file with DGFT via a Digital signature certificate (DSC) and required to pay the fee for IEC Registration.
Step 5: Finally, when your application is approved then you would receive the IEC code in a form of soft copy from the government.
Q1. What is IEC?
IEC stands for Import export code. It is a 10 digit identification number that is issued by DGFT (Director General of Foreign Trade), Department of Commerce or government of India. It is mandatory for businesses or companies to obtain this code to start a business that deals with import and export in the Indian Territory.
Q2. Under what conditions importer and exporter code are not required?
Below are the circumstances under which importer exporter code is not required
Import/export of goods for personal use and not connected with trade, manufacture or agriculture
Import/export by the government ministries and department, and certain notified charitable organizations.
Q3. What are the documents required to get IEC?
Copy of PAN card
Proof of address or premises
Digital photograph of the signatory
Bank certificate or canceled cheque
Q4. Can more than one IEC be issued against one PAN card?
No, only 1 IEC would be issued against a single PAN number. In case more than one IECs allotted to a proprietor then it may be surrendered to the regional office for cancellation.
Q5. How much does it take to get IEC?
After the submission of all the required documents, it takes generally 3 to 7 working days to get IE code.
Q6. Is there any penalty in case the request for modification of IEC (Import/export code) is made late?
Yes, Rs. 1000 has been charged as penalty in case the changes in address/name/constitution are needed and the request for the modification is made late.
Q7. What are the precautions taken before the submission of the application?
Applicant should make sure that all the details are correct and match with the documents
Director general of foreign trade (DGFT), Regional Authority (RA) is selected as per its jurisdiction
Requisite fee is deposited
A physical copy is signed manually by the applicant and then uploaded afterward in the case of IEC Modification.
Q8. Is there any penalty applied to not having an IE code?
No, there is not any penalty imposed on not having an IE code but without IE code import and export are not possible.
Q9. What is the validity of an IE code?
IE code is valid until a lifetime and does not require any renewal.
Q10. What may be the reasons for the rejection of application even after a successful submission?
It may happen because of the following reasons
1. Address proof is not attached
2. Documents are not clearly visible
3. IFSC is not mentioned on Bank certificate
4. Maybe the reason wrong DGFT RA is selected