Overview of IEC Registration
Directorate General of Foreign Trade (DGFT), Ministry of Commerce & Industries, issues IEC registration. It is necessary for Indian companies to have IEC registration if companies want to expand their business via Import and Export. Import Export Code is a ten digit code which is issued by DGFT, the purpose of Import Export License Certificate is to regulate and monitor the foreign trade activities in India.
For carrying out Import Export activities in India obtaining IEC registration is compulsory, without having IEC license no business can involve in import export activity. Plus, if any business wants to entertain the benefits provided by the government then getting IEC registration is must. Reserve Bank of India has made it compulsory for all the traders to provide their Import Export Code during any payment transfer.
In the present era of ever-growing competition, businesses, in order to survive their substitutes available in the domestic market, are stepping out of their local presence. With back to back innovations and the generation of new ideas in business, the emergence of e-commerce, business operating in local limits finds it important to operate globally by stepping abroad.
There are several methods to go beyond the domestic level, such as amalgamation for foreign brands, opening franchisee abroad, starting subsidiary or branch office abroad, or through import-export business. Doing business at the global level is not that easy as it sounds.
Import Export Code (IEC) once gave can be utilized by the entity all through its existence and it doesn’t necessarily need any renewal. When the organization has gotten IEC, at that point the organization can involve in import export necessities with no issues.
Benefits of IEC Registration
Till now it is clear that Import Export Code is a ten digit code which is essential for every business to obtain who wants to indulge in import export activities. In India DGFT issues IEC. IEC Registration is the first thing that businesses need to import or export any item from India to some other nation. IEC registration paves the way for many new opportunities for business personnel.
Here are the few benefits of IEC Registration:
- Expansion of Business
With the help of IEC business can expand its reach in the global market. IEC provide the opportunity to business to export its goods and products outside the nation’s territory and create a name for oneself in the international market.
- Availing Several Benefits
On the basis of IEC registration businesses can enjoy several benefits given by Export Promotion Council, DGFT, and Customs.
- No Need of Return Filing
IEC doesn't include in the filing of return. Once IEC is allocated, there isn't any necessity to follow any kind of procedures for supporting its legitimacy. In any event, of export transaction, DGFT doesn't order for filing any return.
- Hassle-Free Processing
Acquiring IEC from DGFT is genuinely simple and same can be gotten within a time of 10-15 days in the wake of presenting the application. No evidence of export or import is required subsequent to getting IEC Code.
- Free for Lifetime
Once you have obtained IEC you can enjoy its validity till eternity since it is free for lifetime plus there is no need of any renewal.
- Government Authorizes Proof
Import Export Code is a government identity which is issued by the DGFT. At the time of clearance of shipment one can show this identity number.
Documents Required for IEC Registration
- PAN Card of the individual or company
- Current Bank account statement of the individual or company
- A copy of cancelled cheque
- A copy of Driving License
- A copy of Aadhar/Voter ID
- Certificate of Incorporation/Partnership Deed
- Address proof of the office premise
Exemption of IEC
- The individual involved in import and export of goods for individual reasons and not associated with trade, horticulture and manufacturing are absolved from getting IEC registration.
- People who export/import products to/from Nepal and Myanmar through Indo-Myanmar fringe zones and China with single transfer which doesn't surpass in Indian cash Rs.25,000 doesn't require IEC.
- Exception from acquiring IEC will not be appropriate for export of Special Chemicals, Organisms, Materials, Equipments and Technologies (SCOMET) as listed in Appendix - 3, Schedule 2 of ITC (HS).
Key Features of IEC Registration
- No business can indulge in Import/Export activities without taking IEC registration
- It works as a proof that a firm is involve in import/export of goods and products
- Once obtained, an IEC exists for a lifetime. This implies it does not require any renewal.
- It is not mandatory to involve in import or export of goods for individual or legislative purposes.
- IEC is obligatory for making foreign bank transfers
- It is substantial for all parts of importers or exporters business.
When IEC registration is required?
- It is important to get IEC registration done to import and export goods. It passes on the vendor code details with the port through which the items or administrations are being imported or exported. Illicit vehicle of goods is confined, and subsequently IEC helps in diminishing it since it is practically difficult to get import export code without giving the total data of the things being imported or traded.
- Custom authorities will only clear your shipment as an importer if you have an IEC number.
- Bank needs IEC registration in order to send money abroad
- To make his shipments clear an exporter needs IEC registration at the custom port
- IEC registration is needed when an exporter receives payment in foreign currency directly into his bank account
- Only on the basis of IEC registration a government of the other countries verify the trader.
Registration Procedure of IEC Registration
To be a part of import export business in India it is necessary to get your IEC registration done. Once it is done it remains valid for the lifetime of the business or the proprietor.IEC registration can be done online by visiting Directorate General of Foreign Trade (DGFT) website.
Here is the step by step guide of IEC registration:
Step 1: Visit DGFT Website
Go to DGFT (Directorate General of Foreign Trade) site or snap on www.dgft.gov.in. There's a possibility for 'Quick Links' at the left half of the page. Now you need to tap on the option 'Apply for New Import Export Code (IEC)/Modify existing IEC.'
Ste2: Enter Your PAN Number
In the next page, you to have to fill your PAN details. Then take your mouse on the ‘Search’ option.
Step 3: Enter details for PAN verification
Once you have clicked on the search option you will be directed to a page where you will be asked to fill the following details:
- Name (as per the PAN)
- Date of Birth OR Date of Incorporation
- Captcha Code
After mentioning the details click on submit. Make sure you have mentioned all the details correctly; any wrong detail can lead to authentication failure.
Step 4: Status of PAN Verification
If you details are accurate and valid a message will appear on screen stating your PAN has been verified. The next step will ask you to click on ‘Proceed’ button.
Step 5: Login for fresh IEC Application
In this step you need to give your mobile number and email address. On the right-hand side, you will be asked to mention the Captcha code and then click on ‘Generate OTP’.
Step 6: Enter the OTP
An OTP will be sent to your email address and also at your mobile number. Enter the OTP and click on Submit. In the event that, you haven't got any OTP, click on 'Regenerate OTP.
Step 7: E-commerce number generated, Update Master Data
Once you have clicked on the submit button after mentioning OTP, a 20 digit number will pop on the screen. On the right side of the screen, you need to provide the following details:
- Entity Name
- Entity Address
- State, District, PIN code
- Mobile number and email address as provided earlier
- Name on PAN card
- Date of Incorporation
- Nature of concern such as Proprietorship, LLP, and Private limited, Public Limited, Undertaking, etc.
- Activity you are involved in such as Merchant Exporter, Manufacturer Exporter, Service provider, etc.
- Bank account Number
- Account Holder Name
- Applicant Details
Click on ‘Update and Save’ button when you have mentioned above details.
Step 8: Update Branch Details
The next page will ask you to fill the Branch Details of the firm. The page will ask you to fill the following details:
- Branch SI. No
- Address of the Branch
- 6 Digits PIN
Once you have clicked on the Add button you will be directed to the next page.
Step 9: Update the details of Director/Proprietor/Partner/Karta/Managing Trustee
This page will ask you to provide all the details related to Directors, partners, proprietors, etc. Details are as follows:
After providing all these details, click on ’ADD’ button.
Step 10: Upload Documents
In this step, you need to upload documents which should either be in PDF format or in the form of GIF. Documents such as Address Proof, Cancelled cheque, or Bank certificate are uploaded.
In Address Proof, you can use the following documents:
- Lease Deed
- Sales Deed
- Rent Agreement
- Electricity Bill
- Partnership Deed
- MOU (Memorandum of Understanding)
For Proprietorship these are the acceptable documents:
Note: Keep your document size 5MB.
Step 11: Fee Payment and Fee Verification
After uploading all the required documents it’s time for you to pay the required fees. Don’t forget to verify the fees once you have submitted it.
Step 12: Preview and Print Application
Prior to continuing to the final submission of the application, you have to see the whole subtleties you have filled. After you have checked it thoroughly, click on Print Application.
Step 13: Final Submission of the Application
In the final step all you have to do is submit your application, you can do it by clicking on the ‘Submit’ button. You can submit the application either utilizing Digital Signature or without Digital Signature.
Give details of your PAN number if you want to check the status of your application.
Changes under IEC for Goods and Services Tax
After the execution of Goods and Services Tax in GST system, GSTIN would be utilized for credit stream of IGST paid on import of products. In any case, the PAN is identifier at the substance level of the limit though GSTIN would be utilized as identifier at the exchange level for each import and export. The UIN or PAN would be acknowledged as IEC. All importers required to cite GSTIN in their solicitations notwithstanding IEC.
It is obvious that in the event that anyone expects to maintain the business comprehensively, at that point he/she should obtain the Import Export Code from the DGFT. Without IEC License, one can't carry on the matter of import and export in any condition. From the above-portrayed facts, we can presume that acquiring certification for IEC is not that typical. Discussing its advantages, we can say that there's no cerebral pain of filing any return, the procedure is quite simple, no renewal is required, and so forth.
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Frequently Asked Questions
IEC code can be surrender by intimating the intention to the authority who earlier issued the license. Upon the receipt of an application for license surrender, issuing authority shall cancel the same after noting the reason thereof. Thereafter, DGFT is notified about the same who in return transmit it to custom, RBI or any such other authorities intimating about IEC becomes inoperative.
Following is the exception for IEC registration:
- IEC is not an obligation for the traders registered under Goods & Service Tax (GST)
- If there is export or import of any product merely for personal consumption and not for commercial purpose, there will be no need to obtain IEC code
- There is no requirement to obtain IEC code in case the import or export is done on behalf of the Government of India by any department, ministry, or notified charitable institute.
Import-Export code is not a tax registration; however, depending upon the product, the certain custom duty can be imposed.
No, any individual, company or sole proprietor engaged in the business of import-export needs to obtain an IEC license. It is the necessary recognition provided by the GovernmentGovernment to exporters and importer of goods or services. However, if the value of the good transacted is too low, the authority may permit first export after imposing nominal charges.
All who wishes to obtain IEC can apply for it by submitting an application at Joint Director General of Foreign Trade
You can modify your application numerous times before it is submitted to the next department.
With the help of IEC Registration, you can obtain various benefits from the DGFT, Customs, export promotion council, etc.
Yes, it is mandatory to provide PAN Card. You need to furnish the self-attested copy of your PAN Card along with the application.
No, the IEC is delivered only to the address mentioned in the application.
You would need to provide proof of address copy of ownership title, registered copy of lease deed, copy of telephone bill, electricity bill, registered copy of rent deed, etc. need to be provided to prove the genuineness of your firm.
You need to provide a copy of both sides of your PAN Card to identify the issuing authority’s address.
No, the validity of IEC Registration is of a lifetime. Therefore there is no requirement to revalidate it.
Cancellation of the allotted IEC can be made by surrendering the same.
No, Import Export Code is a permanent document and is not item based.
You need to check the status of your BIN or Business Identification Number on the official site.