With Kerala emerging as a hub for export-oriented industries such as spices, coir, seafood, ayurvedic products, and handloom goods, more businesses are looking to expand into global markets. One of the first legal requirements for any business or individual wishing to engage in import or export activities is obtaining the Import Export Code (IEC).
IEC registration is mandatory and is issued by the Directorate General of Foreign Trade (DGFT). While the process may seem straightforward, many applicants—especially first-timers—make critical errors during the application stage, leading to delays, rejections, or future compliance issues.
In this blog, we’ll walk you through the most common mistakes made during IEC registration in Kerala and how to avoid them. For a seamless and error-free experience, it’s always wise to consult with experts like Our Tax Partner, who specialize in IEC registration and compliance services.
1. Entering Mismatched PAN Details
The IEC is now directly linked to the PAN of the business or individual applicant. One of the most common mistakes is entering incorrect PAN details or details that do not match the PAN database maintained by the Income Tax Department.
How to avoid: Ensure the name, date of birth/incorporation, and PAN number match exactly with the PAN card. Verify your PAN on the Income Tax portal before submitting your IEC application.
2. Providing Inconsistent Business Address
Your address on the IEC application must match your address proof and, preferably, other business registrations like GST and UDYAM. In Kerala, many applications are delayed or rejected due to minor mismatches in the address mentioned on utility bills or lease agreements.
How to avoid: Upload the most recent and clearly readable utility bill, rental agreement, or property ownership proof. Ensure the address matches the one entered in your application word-for-word.
3. Uploading Low-Quality or Unclear Documents
IEC registration is fully online and requires you to upload several supporting documents. If these documents are blurry, not legible, or incorrectly formatted, your application may be rejected.
How to avoid: Scan your documents in high resolution. Upload in PDF or JPEG format with clear visibility of content and official stamps/signatures.
4. Not Submitting Correct Bank Details
The IEC application requires details of your bank account to be submitted along with a canceled cheque or a bank certificate. Many applicants submit outdated or incorrectly named cheques, which can cause rejections.
How to avoid: Submit a canceled cheque that includes your business name, IFSC code, and account number. If this isn’t available, get a bank certificate on the bank’s letterhead with the correct details.
5. Using Expired or Invalid Digital Signature Certificates (DSC)
If you are applying for IEC using a DSC (Digital Signature Certificate), it must be active, valid, and registered with the DGFT portal. Many users in Kerala encounter submission failures because of expired or misconfigured DSCs.
How to avoid: Verify your DSC before beginning the process. If it’s expired, renew it with authorized providers. For proprietorships, you can opt for Aadhaar e-sign, which is more convenient.
6. Incorrect Entity Type Selection
Choosing the wrong business type (e.g., sole proprietorship instead of partnership or private limited company) leads to document mismatches and application rejection.
How to avoid: Clearly identify your legal structure and select the correct type during application. If your business is registered under MCA, the application should reflect the company’s legal name and structure.
7. Ignoring Email and Mobile OTP Verification
The IEC registration process includes OTP verification of the mobile number and email address provided in the application. Ignoring or failing to complete this verification step results in incomplete applications.
How to avoid: Ensure the mobile number and email entered are active and accessible. Complete the OTP verification process immediately when prompted.
8. Submitting Multiple Applications for the Same PAN
Some applicants mistakenly submit multiple IEC applications for the same PAN, either due to submission errors or system glitches. This leads to confusion and processing delays.
How to avoid: Wait for confirmation before submitting again. Track your IEC application status through the DGFT portal using the reference number provided during submission.
9. Using Incorrect Authorisation Letter Formats
For businesses like partnerships, LLPs, or companies, the application must be supported by a proper authorization letter. Submitting an incorrect or unsigned letter leads to rejections.
How to avoid: Use the format prescribed by DGFT. Ensure the document is printed on letterhead and signed by all authorized persons with their name and designation clearly mentioned.
10. Not Seeking Expert Guidance
IEC registration may seem easy, but there are many technical, legal, and procedural nuances that can trip up even experienced applicants. Doing it yourself without understanding the requirements could lead to costly mistakes and delays.
How to avoid: Get expert help from Our Tax Partner. Their professionals ensure your application is complete, accurate, and fully compliant with DGFT norms.
How Our Tax Partner Helps You Avoid These Mistakes
Our Tax Partner offers specialized IEC registration services for businesses and individuals across Kerala. Whether you’re an exporter in Kochi, a spice trader in Wayanad, or an ayurvedic product manufacturer in Thrissur, they can handle the entire process for you from start to finish.
Our services include:
- Document verification and guidance
- PAN and address consistency checks
- DSC or Aadhaar e-sign support
- Bank detail verification assistance
- Tracking and follow-up till IEC is issued
- Post-registration updates or modifications
Visit our IEC service page here: www.ourtaxpartner.com/registration-service/import-export-code/
Conclusion
IEC registration is your first step toward building a global business. However, small errors during the application process can create significant delays or lead to outright rejection. By understanding and avoiding these common mistakes—and by working with experts like Our Tax Partner—you can ensure a smooth and successful registration process.
Don’t let paperwork stop you from going global. Start your IEC registration journey today with the guidance and support of professionals who understand the process inside and out.
