What Is Import Export Code (IEC)?

If you are a businessman looking to expand your business beyond the domestic market, the import export code is your gateway to global trade. In India, you must have an IEC certificate to make such transactions to export your product to another country.

Whether you are seeking to import raw materials for a large-scale production house or export your products to an international organization, obtaining an IEC is mandatory. IEC is a unique identification number, without which you cannot clear goods through customs, access foreign currency & grab international business opportunities.
In this comprehensive guide, you will get to know everything about the IEC certificate, benefits, registration process, fees, and validity.

What Is An IEC Number? 

The IEC number is a 10-digit identification code issued by the Director General of Foreign Trade(DGFT). It is a crucial number for any business involved in import export services from India and acts as a first step to enter the global market for international trade. Import Export Code not only simplifies your entry into the international market but also ensures navigating delays and complications.

Who Can Apply For An IEC (Import Export Code)? 

IEC is essential for any individual looking to import or export services or goods from India. Below are some entities that can apply for IEC:

• Any individual or entity that wants to import or export goods and services from India can apply for an IEC certificate.
• A partnership firm or a sole proprietorship firm can apply for an IEC.
• Companies that participate in international trade can apply for IEC.
• Trusts and societies engaged in international trade for charity purposes can also apply for IEC.

Benefits Of Import-Export Code Certificate  

Any company in India that wishes to engage in international trade must have an Import Export Code (IEC) certificate. Benefits include:

Legal Authorization for Business: If a company wants to export or import goods and services from India, they have to apply for an IEC. Without it, a business cannot complete clearance on shipments, pay international suppliers, or import international goods.

International Business: An IEC allows companies to engage in and be viewed as legitimate international markets, and increase clientele by extending their reach globally.

Government Schemes: IEC holders may also utilize various schemes by the government, such as government export incentives, exemption schemes, tax benefits, and subsidies from the DGFT, Customs, and Export Promotion Councils.

Once Issued: An IEC is issued for a lifetime; it does not expire nor is it ever revoked, it does not need to be renewed or have annual compliance.

Easy and Fast: IEC can be obtained through an online system, extremely easy with minimal documentation and time to submit.

Credibility: Owning a valid IEC certificate adds to the credibility and reputation of a company in the international market, for foreign buyers and suppliers.

Importer Exporter Code Registration Process? 

Below are some key steps that an applicant shall follow for a seamless grant of an IEC certificate:

• Step 1: Visit the DGFT site and proceed with the registration of the IEC certificate, verify PAN card details, and proceed further.
• Step 2: After verification from the DGFT site, your application will get redirected for OTP verification, which you need to verify through mobile or email.
• Step 3: Fill out the application form, providing all the necessary information, including business details, the address of the applicant, and bank proof.
• Step 4: Attach the required documents and upload all the documents for further processing.
• Step 5: Pay the applicable fees
• Step 6: Upload all the documents, apply, and after verification of information, the IEC certificate of the importer exporter code will be issued.

Documents Required For Obtaining an Import Export Code License

The following are the key importer-exporter code registration documents that you may require:

• Name and Address of Applicant
• PAN Card of Applicant
• Aadhar card of the Individual/ Company’s Director/ Partner
• Proof of Address: Rent bill or electricity bill
• Bank Account Details
• Proof of Establishment: Any registration of a company, partnership, or proprietorship

Pre-requisites Before Applying For an Importer Exporter Code Certificate

Below are the Pre-requisites that need to be followed before applying for an IEC registration online:

• Customs Clearance: When an individual Importer imports any goods from other countries into India, then at the shipping port, he needs to present an IEC certificate for clearing the goods from customs officers. The clearance will proceed only if all the documents, along with the IEC certificate, are presented by the Importer.
• For Banking Purposes: When an Importer transfers money into foreign accounts through a banking channel, the bank asks for an IEC certificate for making such transactions. Without an IEC certificate, no transaction will occur.
• Export of Goods: While exporting your product to other countries, you need to show the IEC certificate to the customs officer to proceed with the trade.

What are the Import Export Code Registration Fees?

The IEC application cost will be ₹500 approximately, and the professional fee depends on the state and country of origin you are applying for.

What Is The Timeline for Obtaining a Certificate of Import Export Code? 

After the submission of the application form, the IEC certificate is issued within 2-3 days.

Importer Exporter Code Validity

The IEC certificate remains valid throughout the lifetime from the date of issue; no renewal or periodic maintenance is needed once you obtain the IEC certificate.

How Can I Update the IEC Certificate?

If you obtain an IEC certificate and need to update this, then you must understand the process to update the Importer Exporter Code as follows:

• Go to the DGFT website & log in to your account.
• Navigate to the IEC module & click on “Update IEC”
• Enter your login credentials and CAPTCHA.
• Select “Update/modify IEC”
• Complete all fields on the “Update IEC Registration Form.”
• Click on “Submit.”

How Elt Corporate Can Assist You With The Grant Of An IEC Certificate? 

ELT Corporate assists you in obtaining an Importer Exporter Code (IEC) by assisting you with the process, document preparation and checking, online application with DGFT, status tracking, and supporting you even after certificate issuance. Their professional support provides a fast, hassle-free, and blemish-free experience.

Also read: How to import cosmetics from Thailand to India

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