An Overview of IEC Registration

With the rapid increase in globalization, nowadays, the opportunity of having a cross border business is also increased. Moreover, an IEC Registration also assists an individual in unlocking the growth opportunities of the international business. Further, every individual who wants to expand their business on a global platform by dealing with the Import and Export business is mandatorily required to obtain IEC Registration Certificate.

Hence, having an IEC (Import and Export Code) is one of the basic and essential prerequisites for expanding and running a business at the global level. Moreover, an IEC has various advantages annexed to it. One such benefit of an IEC Code is that it not only assists in unlocking the international market but also helps in increasing the business's growth level.

What is an Import Export Code?

IEC or Import-Export Code is a 10-digit code that an individual or a business needs for the import or export goods or services. Further, this code is allotted by the Director General of Foreign Trade (DGFT), Ministry of Commerce and Industries, Government of India.

Furthermore, the validity period of this code is for a lifetime. This means that there is no need for the IEC code holder to apply for its renewal. Hence, the company having IEC is able to perform all requirements concerning import-export and related issues.

Usually, a period of 12-15 working days is required for the generation of IEC code once all the required documents are submitted and corrections are made. Further, having an IEC is mandatory and compulsory for every commercial importer or exporter in India. Hence, the business not having IEC is not qualified to undertake the category of import and export.

Features of Import Export Code Registration

The following listed are the Features of IEC Registration:

• No business can indulge in the activities concerning Import or Export without obtaining IEC registration.
• IEC works as evidence for the firm involved in the import or export of goods and products
• Once an individual has obtained IEC, then the same remains valid for a lifetime. This means this code does not require any filing or renewal.
• IEC Code is not required for the goods or services imported or exported either for individual or legislative purposes.
• An IEC is obligatory and mandatory for making foreign bank transfers.
• It is considerable for all parts of importers or exporters business.

Benefits of IEC Code Registration

The following listed are the benefits of IEC Registration:

• Expansion of Business

With the help of IEC code license take your business global and an individual can easily and smoothly expand the business's reach in the global market. Further, an IEC not only provides an opportunity for the business to export goods outside India but also assists in creating a name for oneself in the international market.

• Availing Several Benefits

Based on IEC registration, nowadays, businesses can enjoy and avail benefits provided by the EPC (Export Promotion Council), DGFT, and Customs.

• No Need to File Return

IEC does not require the filing of return. Hence, once an IEC Code is allocated, there is no need to abide by any procedure for proving its legitimacy. Further, in any event, relating to export transactions, DGFT does not require the filing of any return.

• Hassle-Free Processing

The process of obtaining IEC registration from the DGFT (Director General of Foreign Trade) is genuinely simple and easy. Moreover, the same can be acquired within a period of 10-15 working days from presenting the application. Further, no evidence relating to export or import is needed subsequent for obtaining IEC Code.

• Free for Lifetime

Once an individual has obtained his or her IEC, he or she can enjoy its validity till perpetuity since it is free for a lifetime, and there is no need to apply for any renewal.

• Government Authorised

Import Export Code (IEC) acts as a government identity which is issued by the Director General of Foreign Trade. Hence, at the time of shipment clearance, one can show this identification number to the customs authorities.

When is IEC Registration Required?

The following listed are the situations which mandatorily requires IEC Registration:

• When an importer wants to clear his shipments from the customs authorities, this code is required by the customs authorities.
• Whenever an importer sends money abroad by way of banks, then the banks need this code.
• If an exporter wants to send his shipments abroad, this code is required by the customs port.
• Whenever an exporter receives money in the form of foreign currency directly into his bank account, then this code is required by the bank.
• For obtaining Food Licensing and APEDA Licensing, having IE Code is a must.
• Whenever an exporter wants to avail of some export subsidy, then this code is required by the export promotion council.

When is IEC Registration not Required?

The following listed are the situations which mandatorily requires IEC Registration:

• When an importer wants to clear his shipments from the customs authorities, this code is required by the customs authorities.
• Whenever an importer sends money abroad by way of banks, then the banks need this code.
• If an exporter wants to send his shipments abroad, this code is required by the customs port.
• Whenever an exporter receives money in the form of foreign currency directly into his bank account, then this code is required by the bank.
• For obtaining Food Licensing and APEDA Licensing, having Import Export Code is a must.
• Whenever an exporter wants to avail of some export subsidy, then this code is required by the export promotion council.

Who can apply for IEC Registration in India?

1. Export Houses;
2. Production facilities importing raw material;
3. Entities intending to involve in EXIM Business;
4. Exporter & Importer;
5. Importers of goods or products seeking special authorisation from DGFT;
6. Manufacturer cum exporter;

Note: IEC is available to the registered entities only in India. Hence, ensure to secure a Business Certificate in the first place before getting IEC Registration.

Documents Required for IEC Registration

Following are some vital documents required for IEC Registration in India:

• PAN Card of the company (not applicable in case of the proprietor);
• PAN Card and Aadhaar Card of the applicant such as Voter ID, Driving License, Passport, etc.;
• Partnership Deed or Certificate of Incorporation;
• Address Proof such as electricity bill or Sale Deed or Rent Agreement of the office location;
• Copy of cancelled cheque leaf or Banker Certificate of the current account in the company’s name.

Procedure for IEC Registration

The steps involved in the process of IEC Registration are as follows:

Step 1: Obtain DSC from a Certified Agency: A Digital Signature Certificate is conferred by the Certification Authority & is signed with the private key of Chartered Accountant (CA). A Digital Signature Certificate entails the following details:

• Serial Number;
• Owner Name;
• Digital Signature of issuer;
• Public Key Expiration Date;
• Public Key of the Owner;
• Issuer’s Name.

Step 2: File an Application: After obtaining the DSC, the next step is filing application, the applicant can proceed to DGFT official website to apply for IEC Registration. To service this purpose, they must create a legit account on the website before completing the registration formalities.

Step 3: Submit Documents: At the time of filing the application, the applicant shall be prompted to provide above mentioned documentation and submit the same in the prescribed format along with the application.

Step 4: Payment: Proceed to the payment section to submit the requested fees upon submitting the application form.

Step 5: Inspection: After submitting the application for IEC Registration, the concerned authority shall initiate the inspection process to make some legal checks.

Step 6: Issuance of IEC Registration Certificate: After the verification or inspection of all the documents and application, the authority will issue the IEC Registration Certificate.

Note: IEC Registration is non-renewal & comes with lifetime validity.

Cancellation of IEC Registration

Following are the reasons for the cancellation of IEC Registration in India:

1. Violating norms prescribed under Foreign Trade Policy;
2. Import or Export of prohibitive items;
3. Non-adherence to custom’s direction;
4. Misleading custom authority by fabricating details in the shipping documents.

Exemptions under Import Export Code

The following listed are exemptions under Import Export Code:

• The individual who is engaged in importing and exporting goods for individual purposes and not related to the trade, manufacturing, and horticulture are exempted from obtaining IEC registration.
• People who want to export or import products to or from Nepal and Myanmar by way of China and Indo-Myanmar fringe zones with a single transfer that does not exceeds Rs. 25,000 in Indian cash does not require IEC Registration.
• Exemption from acquiring IEC registration will not be valid for the export of SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies) as provided in Appendix - 3, Schedule 2 of the ITC (HS).

What are the changes made under IEC for GST?

After the enforcement of the GST regime, the GSTIN (Goods and Service Tax Identification Number) would be used for the credit flow of IGST (Inter-state Goods and Service Tax) paid on the import of products. However, PAN is an identifier at the substance or entity level of the limit. In contrast, GSTIN would be applied as an identifier at the transaction level for each import and export. Further, the UIN (Unique Identification Number) or PAN (Permanent Account Number) would be acknowledged as IEC. Furthermore, all the importers are required to state GSTIN in their solicitations, nevertheless IEC.

The following listed are changes made after the implementation of GST Laws:

• After the GST implementation, the traders were mandatorily required to declare their GSTIN at the time of import or export.
• GSTIN would be used for the credit flow of the IGST on import of goods, and for the rebate or refund of the IGST concerning the export of goods.
• Obtaining IEC will not be obligatory for all traders registered under GST.
• Exports or Imports done by the Ministries, Government of India Departments, Notified Charitable Institutions do not require Import Export Code.
• IEC is not necessary for the goods imported or exported for personal use.

FAQs of IEC Registration