Understanding Importer Exporter Code (IEC) in India: A Practical Guide

Regardless of the business size, any import or export will be held illegal without this 10-digit code. Who issues this code? How to obtain it? What does it signify? Read on as we explore all the important questions to get a better understanding of IEC.

What is IEC?

Importer Exporter Code (IEC) is a 10-digit unique identification number provided by the DGFT under the Ministry of Commerce and Industry, Government of India. It is compulsory for any person or entity engaged in the import or export.

IEC is mandatory in the following cases:

• When exporting goods through customs clearance.
• While remitting and receiving foreign exchange through banks.
• At the dispatch of shipments by international export
• When receiving export proceeds into a foreign account.

Benefits of IEC Registration

IEC registration has several benefits:

• Access to Global Markets: It provides access to global markets and enables firms to expand their base globally.
• Tax Incentives & Allowances: Exporters registered with the IEC can claim GST tax exemptions and are eligible for various government schemes.
• Ease in Trade Transactions: Legal recognition facilitates smooth customs and banking procedures.
• Lifetime Validity: The IEC will remain valid for the lifetime once issued, and there is no need for renewal at regular intervals.
• Fast and Trouble-free Processing: IEC can be acquired within 10 to 15 working days, provided all documents are in proper order.
• No Return Filing Needed: No return filing is needed compared to other registrations, as IEC holders need not file returns.

Who Must Have an IEC?

IEC is necessary for:

• Individuals or entities who wish to import or export goods and services.
• Sole proprietorships, firms, private limited companies, HUFs, and even charitable trusts that plan to trade internationally.

However, IEC is not required in the following situations:

• Traders who have registered under GST.
• Import/export for personal purposes, unrelated to trade or manufacturing.
• Government departments and some notified charitable trusts.

Documents Needed for IEC Registration

To get IEC registration, the following documents are required:

• PAN card of the business or individual.
• Aadhaar card or passport (with matching PAN information).
• Proof of establishment of the business (registration/incorporation).
• Proof of address (electricity/telephone bills, rent or lease agreement).
• Bank details (cancelled cheque of current account).
• Digital Signature Certificate (DSC).
• Self-addressed envelope for certificate dispatch (in case of post option).

Step-by-Step Guide to Register for IEC

The registration is entirely online and can be processed via the DGFT website. Follow these steps:

• Visit the DGFT Website: Use the DGFT portal and choose Services, and then IEC Profile Management.
• Start Application: Click on Apply for IEC and then Start Fresh Application.
• Register: Register yourself by providing your details and verifying through OTP. Your registered email will receive a temporary password.
• Login and Apply: Log in using your new credentials. Enter information like entity details, proprietor/partner details, bank details, and upload mandatory documents.
• Submit: Sign and submit the form using your DSC or Aadhaar.
• Make Payment: Pay for the application fee online. Download the receipt of payment once it is successful.
• Receive IEC Certificate: The certificate will be received in your registered email as well as be downloadable from the DGFT portal.

How to Download Your IEC

To download your IEC certificate:

• Log in to the DGFT website through your login credentials.
• Navigate to Services, followed by IEC, and then to Manage IEC.
• Confirm your information and click on Print IEC to save the certificate in PDF.

How to Renew or Update Your IEC

While IEC is valid for a lifetime, renewal in April-June every year is now compulsory to maintain the code. Failure to renew might result in deactivation. Procedure to renew or update your IEC:

• Log in to the DGFT website.
• Proceed to IEC Portfolio Management and choose Update/Modify IEC.
• Connect your IEC with OTP or DSC.
• Edit required details, confirm through DSC/Aadhaar, and submit.

Conclusion

For Indian companies looking to leave their mark in international trading, procuring the Importer Exporter Code (IEC) is a starting point. The IEC goes beyond being a regulatory necessity and can be considered an international trade passport. Whether you’re exporting handloom items or importing machinery, obtaining your IEC brings you one step closer to taking your business global.

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