Import Export Code (IEC) is obtained by every person and business entity who intends to start Import and Export business in India.
Import-Export Code (IEC) is a 10-digit identification number that is mandatory for all business entity that wants to do Import or export activities. Therefore, a person/entity shall not be eligible to make any import or export of goods if he does not possess a valid IEC Number.
However, for the import or export of services or technology, the IEC will only be necessary if the service or technology provider intends to avail benefits under the Foreign Trade Policy or engage with specified services or technologies. The Director General of Foreign Trade (DGFT) in India grants it.
Importers must quote the IEC when clearing customs; without quoting it, they are not allowed to proceed. Also, the banks demand the IEC of importers while sending money abroad. Exporters must quote the IEC while sending shipments, and banks require the exporter’s IEC Code when receiving money from abroad.
Further, exporters can’t take benefit of exports from DGFT, Customs Departments, and Export Promotion Council, if they don’t have this code.
After the introduction of the new system, the Import Export number is the same as the PAN of the entity or individual but it would be separately issued by DGFT. IEC registration is a completely online process and can be completed within 4-5 days, once issued it shall be valid for a lifetime.
Once the business entity obtains Import Export Code (IEC), it gets access to the international markets and can easily sell goods and services beyond the national boundaries. It helps businesses expand globally and make their mark in the international market.
The government provides various incentives and benefits to importers and exporters under different schemes and policies. Generally, Importer and Exporter having valid IEC can avail of benefits under these schemes and policies.
Importers must have an IEC number to obtain clearance for any shipment received from a foreign country. Additionally, after the shipment is cleared, the importer must pay the applicable customs duty on goods to the Customs Department, and once again, they need to furnish the IEC.
Import Export Code (IEC) once issued to a person/entity is valid for a lifetime and does not require filing any type of returns or forms to DGFT. However, every IEC holder has to update the details of the IEC every year during the month of April to June.
In the very first step, the applicant has to send us the required documents as per the checklist. We will then verify the documents and if the documents are fine, then we would proceed with the application process.
Once we receive all the required documents, we shall prepare the profile of the business entity on the DGFT portal and prepare the application for Import Export Code (IEC).
Once the application for IEC is completed, we shall submit the same with DGFT with the help of DSC/Aadhaar-based E-sign and make the payment of applicable government fees. A temporary acknowledgment will be provided after successful submission.
On successful submission of the IEC, you shall receive an IEC Number and a Certificate of Importer-Exporter Code (IEC) from DGFT.
