What is Import Export Code (IEC)
Importer Exporter Code is an identity number issued by the Directorate General of Foreign Trade (DGFT) for the purpose of doing Importing and Exporting business in India. This identity number is shortly known as IEC or IE Code. It is a alpha – numeric code used by DGFT to track the Exporting and Importing activities of the applicant. And this code is mandatory for every persons, who is individual or business have export or Import business except some statutory authorities. Apply online application for IEC Code is the first step for every entrepreneur who wish to do EXIM business in India. It takes 2 -3 working days to allot the IEC by DGFT. Now these days PAN based code is issued by DGFT and applicant must have PAN.
Importance & Need for IEC Registration
Chapter III of the Act describes the Importance, need and Registration of Import Export Code. As per chapter III, “ No person shall make any import or export except under an Importer – Exporter code Number granted by the Director General or the officer authorized by the Director General in this behalf”. So every importer or exporter must take IEC before doing the EXIM business and it is mandatory for them except notified statutory bodies. Import Export Code Registration is like a profiling of an Importer or Exporter. Now these days IEC issued by the DGFT uses as KYC Documents for banks, GST Registration, and other statutory bodies in India. It is increasing the importance of Import Export Code Certificate in our country.
The Import Export Code will be used for various purpose, some of them are listed below :
- For transacting Goods and Services between the Countries
- For paying custom duty on Imports
- For applying MEIS / SEIS Incentive on Exports
- For receiving and payment against the EXIM Transactions
- For the compliance of E -BRC
- For managing ICEGATE login (For Import Export Compliance’s)
- Now a days, IEC Code is used as KYC for opening a Current account in a Bank.
Why need to apply for Import Export Code ?
As per the rule mentioned above, every person who intent to do import export business in India must apply Import Export Code. IEC is a pre-requirement for EXIM transactions. The term import export includes both goods and services. An IEC is necessary to receive a foreign fund against the services or goods provided at the concerned foreign county. So every importers, exporters, deemed importers, deemed exporters must obtain or file online application for Import Export Code at https://dgft.gov.in/. Now PAN of the applicant will act as the Import Export Code ,and also eliminate the requirement of Digital Signature Certificate (DSC) to authenticate the data provided by the applicant. On that position Email and Mobile Number OTP authenttication introduced.
Documents Required for IEC Registration
- PAN of the applicant
- Address proof of the applicant
- Cancelled cheque bearing entity’s pre- printed name or Bank Certificate
- Valid E Mail id & Phone No.
Documents accepted as Address Proof
For Business : Sale Deed, Rent Agreement, Lease Deed, Electricity Bill, Telephone Land line bill, MoU, Partnership deed
If Individual : Aadhar Card, Passport and Voter id also accepted
Note : In case the address proof is not in the name of the applicant firm, a Non Objection Certificate (NOC) by the firm premises owner in favour of the firm along with the address proof is to submitted as a single PDF document.
Period of License (Validity) / Renewal / Modification / Cancellation
Import Export Code issued by the DGFT have unlimited validity and also no need to file any kind of monthly returns like GST Return Filing or Income Tax Return Filing against the IE Code Registration. There is no renewal required for the Import Export Code. Every IEC holder mandatory update the major changes in business at IEC Database at DGFT like changes in PAN, Communication address, authorized signatory etc. An existing Import Export Code can cancel by giving a Letter of Cancellation with authorization at DGFT.
IE Code processing by DGFT will take 2 -3 working days and will receive an E Mail Confirmation to the Registered ID or can check the IEC status at https://rla.dgft.gov.in:8100/dgft/IecPrint
DGFT Fees applicable to obtain new Import Export Code is Rs. 500/- and modification fees of existing IEC is Rs. 200. The applicant can pay the fees through online.