We may claim that import and export activity has increased like never before, with the globalisation phenomenon reaching its pinnacle and completely changing the game. Many new enterprises are joining the company every year, with government support increasing year after year to gain a competitive advantage and expedite the country’s growth.
Many local firms and players are expanding into the international market to access a larger customer base and increase their company’s revenue margins, while the export and import industries are increasingly flooded with competition.
Because India is a larger market with a higher number of consumers, foreign corporations are expanding their operations there. India is one of the world’s largest markets, boasting a diverse range of both domestic and international companies. This entails examining local brands and businesses to expand beyond regional boundaries and gain access to global markets.
To do so, they need to be able to export their goods or services to other countries and markets. The IEC code, also known as the Import-Export Code, was introduced by the Indian government to facilitate and streamline company export transactions.
The Importer-Exporter Code (IEC) is a necessary company identifying number for exports and imports.
Without initially acquiring an IEC Number from the DGFT, no one may import or export. The IEC is only necessary when a service or technology provider uses the Foreign Trade Policy or is involved in the import or export of certain services or technologies.
Corporations that apply for IEC include limited liability partnerships, partnerships, trusts, limited companies, HUFs, and societies. The IEC number is the same as the firm’s PAN due to the implementation of GST. The IEC would be issued by DGFT separately.
Pre-Requisites for Applying for IEC
IEC can be used for a single proprietorship, a partnership, a limited liability partnership, a limited company, a trust, an HUF, or a society. Before applying, the company must have a PAN, a bank account in its name, and a valid location. On issuing the IEC, the DGFT may physically verify the address. Additionally, prior to applying, please ensure that you have your PAN, bank account information, and information pertaining to the firm ready and available.
Advantages of International Trade or Export-Import
– It aids the firm in increasing income by providing access to new markets and consumers from other nations.
– Due to the currency rates and the pricing stability provided in other nations, there will also be a bigger growth in revenue.
– When an organisation enters a nation where your firm is in a specialised category, there will be no or few domestic participants in the industry, allowing you to boost your chances of capturing the market and consumers.
– Exporters will have access to financing options with reduced interest rates, which will help them save expenses.
– Other arrangements, such as free trade agreements, can assist you in getting access to overseas markets as an exporter or importer at the lowest feasible cost.
Renewal Requirement of IEC Certificate
Globalisation is at its peak right now, and corporations are becoming more active in import and export. Exporters may participate in exporting operations despite having a respectable market in their home country because of higher profit margins or the broader scope of their products in other markets. They also engage in importing operations to obtain lower-cost raw materials or finished items, enabling them to increase their profit margin.
The IEC Certification, which is the Import Export Code that authorises the international commercial exchange of commodities or things, is becoming increasingly significant as a result of the increased involvement in import and export activity. The primary focus of this article is on the requirement to renew this certificate in order to continue or increase export and import operations.
Is there an Expiry for the IEC Certificate?
Throughout the life of a business, there will be several occasions when the owner of the firm needs to update existing information as a result of modifications made to the original business information for various reasons. Some examples are as follows:
- Change in the company or entity’s name
- Change in the entity’s email address from what is given on the IEC Certificate
- Change in the company or entity’s cell phone or contact number from what is listed on the Certificate
A renewal or update of the IEC certificate is required annually, according to Notification No. 58, published on February 12, 2021. And this must be done between April and June, with failure to do so resulting in the deactivation of the exporter’s or importer’s IEC Certificate.
What are the Advantages of Obtaining an IEC Code DSC?
The following are some of the advantages that can be obtained by obtaining the IEC Code Digital Signature Certificate:
- It will help the applicant save money and time, as the process will be simplified and made faster.
- Using the IEC Code Digital Signature Certificate is one of the safest and most secure methods for authenticating one’s identity online.
- The person or applicant submitting an application for a license does not need to be present in person to prove their identity to the concerned authority.
- The government and allied departments can digitise their records, thereby increasing the efficiency of the system.
- The threats that arise from providing identity online and using it for other illegal activities can be kept at bay, as these are encrypted and highly secure.
- There is an added convenience, which helps the applicant save money, time, and effort, as stipulated before.
- The DGFT website offers its applicants a 50% discount on the license fee if the application is submitted online.
Checking the Status of the IEC Application Online
The Importer-Exporter Code (IEC) is applied for and updated using an online platform. DGFT has discovered that, in certain situations, even after issuing an IEC, the IEC data supplied by DGFT to ICEGATE (Customs) is not recognised by ICEGATE (Customs) due to communication faults. As a result, the IEC holder is unable to use this IEC for exporting or importing.
Additionally, a facility has been established to monitor the current status of the IEC application and the progress of the IEC transmission to ICEGATE, enabling the detection and rectification of any issues as soon as possible. The PAN used in the IEC application to DGFT is utilised in the status enquiry.
The option to examine the status of an Import Export Code (IEC) application can be found on the DGFT website under ‘Online Application IEC Know Your IEC Status’ or by visiting https://old.icegate.gov.in/EnqMod/ directly.
To check the status, enter your PAN number and the first three letters of your firm’s name. Actions should be made based on the state presented, as listed below:
| SL. NO. | STATUS | ACTION |
| 1 | The DGFT has received your application | Allow 4 days for RA processing |
| 2 | Application to the IEC was turned down or rejected | Please resubmit your application when you’ve addressed the RA’s concerns. The charge will not have to be paid again |
| 3 | IEC has been sent to ICEGATE, but it has yet to be approved | Wait three/3 days for the IEC to be approved by ICEGATE |
| 4 | IEC was accepted by ICEGATE after successfully registering with DGFT | The IEC is ready to use |
If the status at Si no 4 is not displayed, the applicant should verify the status of IEC at ICEGATE 3 days after transmission at https://www.icegate.gov.in/EnqMod/ and, if necessary, notify the matter to Contact@DGFT. Please be aware that IECs are only ready for import/export of products once their information has been successfully registered with DGFT and accepted by ICEGATE (Customs).
