IMPORT EXPORT CODE (IEC) REGISTRATION

An Importer Exporter Code (IEC) is a key business identification number which is mandatory for export from India or Import to India. No export or import shall be made by any person without obtaining an IEC. For services exports however, IEC shall not be necessary except when the service provider is taking benefits under the Foreign Trade Policy. An individual or a business entity needs a 10 digit code to import or export products or services. This code is known as Import Export Code or IEC and it is issued by DGFT, Ministry of Commerce and Industries, Govt. of India.

When is IEC code required?
• Customs authorities need it to clear shipments during imports.
• The bank needs it to transfer the money when imports are made.
• Similarly during export the shipments the IEC is required.
• When exporter is supposed to receive money in foreign currency, IEC code is required to transfer the            money to his account directly.

Benefits of IEC Registration
1. Expansion of Business
IEC assists you in taking your services or product to the global market and grow your businesses.

2. Availing Several Benefits
The Companies could avail several benefits of their imports/ exports from the DGFT, Export Promotion Council, Customs, etc., on the basis of their IEC registration.

3. No Filling of returns
IEC does not require the filing of any returns. Once allotted, there isn’t any requirement to follow any sort of processes for sustaining its validity. Even for export transactions, there isn’t any requirement for filing any returns with DGFT.

4. Easy Processing
It is fairly easy to obtain IEC code from the DGFT within a period of 10 to 15 days after submitting the application. There isn’t any need to provide proof of any export or import for getting IEC code.

5. No need for renewal
IEC code is effective for the lifetime of an entity and requires no renewal. After it is obtained, it could be used by an entity against all export and import transactions.

Validity of IE Code
IE Code registration is permanent registration which is valid for a lifetime. Hence, there will be no hassles for updating, filing and renewal of IE Code registration. It is valid until the business exists or the registration is revoked or surrendered. Further, unlike tax registrations like GST registration or PF registration, the importer or exporter does not require to file any filings or follow any other compliance requirement like annual filing.

As IE code registration is one-time and requires no additional compliance, it is recommended for all companies and LLPs to obtain IE code after incorporation.

IE Code Exemption
An Import Export Code is required for import of any type of goods by a business. However, the following category of persons are exempted from obtaining an IE Code:

Importer and export by central Government or agencies or undertakings for defence purpose or other specified lists under Foreign Trade (exemption from the application of Rules in certain cases) Order, 1993.
Import or Export of Goods for personal use.

DOCUMENTS REQUIRED FOR IEC REGISTRATION

For IEC Code Registration following documents are required:

1. Individual’s or Firm’s or Company’s copy of PAN Card
2. Individual’s voter id or Aadhar card or passport copy
3. Individual’s or company’s or firm’s cancel cheque copy of current bank account
4. Copy of Rent Agreement or Electricity Bill Copy of the premise
5. A self-addressed envelope for delivery of IEC certificate by registered post