What Is Import Export Code (IEC)?

If you are a businessman looking to expand your business beyond the domestic market, import export code is your gateway to global trade. In India, you must have an IEC certificate for making 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. In today’s world of competition, staying ahead means thinking globally. IEC can help you explore new markets globally and to diversify your portfolio.

What Is IEC (Import Export Code)? 

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

Who Can Apply For IEC (Import Export Code)? 

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

• Any individual who wants to import export goods and services from India can apply for an IEC certificate, even if they don’t have a registered business entity.
• A partnership firm or sole proprietorship firm can apply for IEC.
• Companies that participate in international trade can apply for IEC.
• Trust and societies engaged in international trade for charity purposes can also apply for IEC.

Pre-requisites Before Applying For an Import Export Code Certificate

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

• 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.

Benefits Of Import Export Code Certificate  

The following are the benefits of an IEC certificate:

• Expansion of Business: Everyone wants to expand their business to new heights beyond domestic boundaries. Exploring the global market and emerging trends presents an opportunity for businesses to expand their business, thereby increasing their customer base internationally.
• Legal Authorization: The IEC certificate is mandatory for import and export activities in India. It authorises businesses to conduct global trades, ensuring compliance with the regulatory authority.
• International Market Assess: The IEC certificate allows businesses to gain market access internationally, enabling them to explore new opportunities with global partners.
• Lifetime Validity: The IEC certificate is issued for a lifetime with no requirement for renewal or periodic maintenance. One-time registration allows a businessman to focus on operational tasks without the need for periodic regulatory approval.
• Promotes Business Credibility: The IEC certificate enhances the credibility of business in the eyes of international customers, ensuring global partners that the business is authorized and compliant with international trade laws.
• Seamless Customs Clearance: The IEC certificate helps both importers and exporters simplify customs operations, reducing additional costs and unnecessary delays.

Documents Required For Obtaining an Import Export Code License

The following are the key documents required to obtain an IEC certificate:

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

What Are The Key Steps For Registration Of IEC Certificate? 

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, submit the application and after verification of information the IEC certificate will be issued.

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 Import Export 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”

What Is The Fee Of Import Export License?

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

What Is The Timeline for Obtaining an IEC Certificate? 

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

What Is The Validity Of the IEC Certificate? 

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 ELT Corporate Can Assist You With the Grant Of an IEC Certificate? 

 At ELT Corporate, we understand the importance of obtaining an Import Export Code (IEC), a key requirement for any business engaged in importing or exporting goods in India. With our deep industry knowledge and expertise, we offer a comprehensive service to help you secure your IEC swiftly and seamlessly. Let’s collaborate to ensure your business is fully compliant and ready to expand its horizons globally.

FAQs (Frequently Asked Questions)