Procedure for Import Export Code in India

Procedure for Import Export Code
Savvy Midha
| Updated: Jan 07, 2020 | Category: IEC

With increasing competition amongst the business in India, entrepreneurs are stepping out of the Local Markets to operate at a global level. Doing business abroad comes with several compliances and mandatory licenses that shall be acquired before initiating transactions at an international level. To run a business at a global level one needs to Get IEC Registration Number.

For cross-selling goods and services from India to the places which are outside the domestic boundaries, the business shall obtain Import-Export Code Registration from the necessary authority. It is a mandatory requirement at the time of importing/exporting to mention IEC code for the smooth clearance of goods at custom authority.

Import-Export Code is a 10 digit registration number which is issued by Directorate General of Foreign Trade[1] (DGFT), Government of India, Ministry of Commerce and Industries. DGFT is a government body that manages and regulates foreign trade in India and also it is responsible for forming trade policies regulatory framework and licensing.

Procedure for Import Export Code Registration

Following are the online and offline methods to apply for Import Export code:

Online Procedure for IEC Registration:

  • Visit the official website of IEC [1] to apply for Import Export Number online
  • Select the “Online Application” tab from the left side of the screen and select “IEC Code” thereafter from the drop-down menu
  • The applicant shall enter his PAN number to log in
  • Select the tab “File” and select “New IEC Application” and proceed further to the online application
  • Fill the form and upload relevant documents such as:
  • Copy of PAN of applicant
  • Passport size photograph of the applicant
  • Bank details
  • MOA & AOA in case applicant is a registered company
  • Extract of Board Resolution passed by the company for authorizing the carrying of import-export activity
  • In case the company has its branch office, the same shall be entered in the form.
  • Proceed further to complete the process by making online payment through payment gateways
  • Once the application is submitted, the applicant can check the status of its application using reference number generated online
  • In case everything is found correct, DGFT shall issue the IEC Code License with lifetime validity.

Offline Process for IEC Registration:

  • The applicant shall file the form ANF-2A which can be downloaded online from the website of DGFT
  • Complete the application manually which shall be properly signed on every page
  • The application shall be supported by necessary documents such as self-attested PAN, Bank details, residence proof, and passport size photograph
  • The offline application shall be annexed with demand draft payable to DGFT Regional Office
  • The applicant shall attach a self-addressed envelope with INR 30 inside it
  • Speed post the documents, fee and application to the regional office of DGFT
  • Once DGFT receives the offline application, IEC allotment letter is issued on the self-addressed envelope attached with the application.

Documentation for Import Export Number

Documents attached with the application shall vary as per the applicant such as:

  • Proprietorship Firm: Following documents are required in case of an applicant for IEC Code is Proprietorship:
  • Passport size photo of proprietor
  • PAN and Aadhar of the proprietor
  • Identity proof such as Voter Id/Passport/Driving License
  • Address proof of premise of the entity
  • Partnership Firm: Following documents are required in case of an applicant for IEC Code if the applicant is a partnership firm:
  • Passport size photo of partners
  • PAN and Aadhar of partners
  • Identity proof such as Voter Id/Passport/Driving License
  • Address proof of premise of the entity
  • Partnership agreement
  • Registered Company: Following documents are required in case of an applicant for IEC Code is Company:
  • Passport size photo of directors
  • PAN and Aadhar of directors
  • Identity proof such as Voter Id/Passport/Driving License
  • Address proof of premise of the entity
  • Copy of MOA, AOA, and COI
  • Registered Trust or Society: Following documents are required in case of an applicant for IEC Code is NGO such as Trust or Society:
  • Passport size photo of applicant/secretary
  • PAN and Aadhar of applicant
  • Identity proof such as Voter Id/Passport/Driving License
  • Address proof of premise of the entity
  • The registered trust deed or memorandum

The requirement of Import Export Number

Import-Export Number is required in the following situations:

  • If the entity is planning to initiate any import-export activities, then obtaining the IEC code is mandatory.
  • No firm can carry import-export activities without getting IEC code
  • An organization that is registered under IEC and holds a valid IEC code can avail of several subsidies and benefits from DGFT, export promotion council, and custom.
  • In case of clearance of shipments from custom, IEC Code is required by custom authorities
  • It is required by banks, in case importer makes the payment abroad through his banks
  • Exporter receives the payment for his consignment in foreign currency, then also Import Export Number is demanded by exporter’s bank

Advantages of Import Export Number

A business engaged in import-export business shall get them registered under IEC due to reasons as follows:

  • IEC code ensures the growth and development of the organization by helping it to expand the business worldwide by taking the goods and service to international markets
  • Entities having IEC code can avail several benefits and subsidies as provided by DGFT, export promotion council, and custom.
  • Getting the IEC Code is a fairly easy procedure with the least complicated requirements and can be obtained in minimum time.
  • IEC code issued remains valid for the entire life of an entity throughout its existence. Since there is no need to get it renewed, it saves the huge amount of money and time for lengthy and complicated procedures of renewal
  • IEC License is one of the important legal documents evidencing the business activity of the organization. Once the entity obtains such license, it can carry the import-export activities without hindrance
  • Unlike other government registration, IEC License needs no post-compliances or return filing to DGFT Department.

Winding up the Blog

IEC code is a mandatory requirement for every commercial importer or exporter engaged in such activities. Carrying the business at the global stage without acquiring the IEC Code can cause heavy damages to the business, and no business can avail of several benefits provided by the government to the businesses under this sector. Get started with your import-export business by obtaining IEC License beforehand.

Read, Also:Documents Required for IEC Code for Partnership Firm

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