As global markets become more accessible, entrepreneurs and businesses in Kerala are increasingly looking to export spices, coir products, seafood, handicrafts, and even digital services to international clients. While the opportunities are vast, the legal formalities involved in initiating and managing an export business can be complex—especially for first-time exporters. One of the most crucial legal requirements for venturing into exports is obtaining an Import Export Code (IEC).
In this blog, we’ll explore why IEC compliance is non-negotiable for exporters in Kerala and how it helps businesses avoid legal hurdles and regulatory setbacks. We will also guide you on how to apply for an IEC through expert service providers like OurTaxPartner.com.
What is an Import Export Code (IEC)?
The Import Export Code is a 10-digit registration number issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce, Government of India. It is mandatory for any person or entity looking to import or export goods and services from India.
In Kerala, where export-oriented industries such as agriculture, seafood, handicrafts, and Ayurveda products thrive, IEC acts as the legal gateway to global trade.
Why is IEC Compliance Essential for Exporters in Kerala?
Failure to secure an IEC before starting export operations can lead to a host of legal and operational issues. Here’s why IEC compliance is indispensable:
- Legal Eligibility to Export: IEC is the primary document that allows a business to legally export from India. Without it, customs clearance and foreign remittance receipts are not permitted.
- Customs Clearance: Indian Customs authorities will not allow exports or imports without an IEC linked to the shipping bill.
- Banking and Remittance: Banks require an IEC to process international transactions, invoice payments, and foreign currency transfers.
- Eligibility for Export Incentives: Government schemes like MEIS, RoDTEP, and SEIS mandate an IEC to avail duty drawbacks and financial incentives.
- Compliance with DGFT Rules: Filing updates or modifications to IEC is also essential to remain in good legal standing with DGFT.
Common Legal Challenges Faced by Exporters Without IEC
Exporters in Kerala often encounter legal challenges when they operate without proper IEC registration:
- Delays or denial in customs clearance due to missing IEC
- Blocked payments or remittances from foreign buyers
- Ineligibility for DGFT or state government subsidies and benefits
- Penalties or scrutiny from customs and export regulatory authorities
- Inability to register with export promotion councils like FIEO or MPEDA
Who Needs IEC in Kerala?
- Spice exporters from Idukki, Wayanad, and Thekkady
- Seafood exporters from Kochi, Kollam, and Alappuzha
- Handicraft and coir product exporters from Thrissur and Alleppey
- Ayurvedic product manufacturers and exporters
- Digital service providers, freelancers, and consultants serving global clients
Even service exporters who receive payments in foreign currency need to obtain an IEC to comply with FEMA and RBI regulations.
How to Get IEC Registered Easily in Kerala
Registering for an IEC is now an online process through the DGFT portal. However, many businesses find the process challenging due to document requirements, portal errors, and digital signature prerequisites.
To simplify this, OurTaxPartner.com offers expert IEC registration services for individuals, firms, and companies across Kerala. With support for document preparation, DSC procurement, and application filing, we ensure a smooth, error-free process.
Step-by-Step IEC Application Process:
- Step 1: Prepare digital copies of PAN, Aadhaar, business address proof, and bank certificate or cancelled cheque.
- Step 2: Register on the DGFT portal using Aadhaar or DSC authentication.
- Step 3: Fill out the IEC application (ANF 2A) and upload the necessary documents.
- Step 4: Pay the prescribed DGFT fee (currently ₹500).
- Step 5: Submit the application and download the digitally signed IEC certificate.
With OurTaxPartner.com, most applications are approved within 1–2 working days.
Maintaining IEC Compliance
Once you’ve obtained your IEC, it’s important to ensure continued compliance:
- Update IEC details every year on the DGFT portal between April and June
- Inform DGFT about any change in business structure, address, or ownership
- Ensure linkage of IEC with GSTIN and PAN
Our team at OurTaxPartner.com also helps clients update, modify, or surrender their IEC as per DGFT guidelines.
Why Choose OurTaxPartner.com for IEC Registration and Compliance?
- Experienced professionals with in-depth knowledge of DGFT rules
- End-to-end service from application to certificate download
- Affordable packages for startups, MSMEs, and freelancers
- Remote assistance for Aadhaar OTP and DSC authentication
- Ongoing compliance reminders and IEC management
Conclusion
For Kerala’s export-oriented businesses, securing and maintaining IEC compliance is more than just a regulatory requirement—it’s a strategic necessity. It ensures your shipments pass through customs without delay, your payments are processed on time, and your business remains legally protected in international markets.
Whether you’re exporting traditional products like spices and handicrafts or modern services like software and consulting, IEC is your official identity as an exporter.
Need help with IEC in Kerala? Contact OurTaxPartner.com today for fast, affordable, and fully supported IEC registration and legal compliance solutions.
