Many of the companies in India have ventured into international markets due to the increased international trade, empowering India. Whether you have decided to import into India or export goods or services to a foreign country, a major legal prerequisite is to acquire the Import Export Code (IEC). The online IEC registration process has facilitated and simplified entry into international trade, enabling legal and effective activities by people and businesses.
This blog shares all you should know about what IEC is, who requires it and how one can obtain the Import Export Code online.
What is an Import Export Code (IEC)?
Import Export Code (IEC) is a 10-digit alphanumeric code given by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, Government of India. It is a major business identification number for importers and exporters and a requirement when engaging in international trade to and out of India.
The IEC is binding throughout the existence of the entity and it lets people know that no renewal or filing of periodic returns is required. But in case of a change of business address or the changed business contact details, one has to upload the same on the DGFT portal.
Who Needs an Import Export Code?
Anyone who is dealing with importing or exporting goods or services in or out of India is under an obligation to use the IEC. So what are the details on who should be registering?
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Exporters of Goods
Every company or firm that wants to export any product overseas must have an IEC to have their goods pass through customs and get legal recognition in the business world.
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Goods Importers
Companies that import merchandise into India require an IEC to clear their shipments at the ports and make delivery banking transactions so as to make payments abroad.
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Services Exporters and Importers
The service providers that have foreign clients and accept payments in foreign currency might also need an IEC, particularly in circumstances when banks demand one in order to remit the payments.
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Freelancers and Consultants
Freelancers who supply their services to global clients like IT consultants or digital marketers might require an IEC if banks demand one while sending foreign remittance.
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E-Commerce Sellers
Sellers who sell their products online through international platforms such as Amazon Global, eBay, or Etsy are the ones who require an IEC to ship their products.
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Startups and MSMEs
Small-scale businesses that intend to expand internationally need to register with the IEC to access the benefits of exporting and government programs.
Documents Required for IEC Registration Online
The online registration with IEC needs the following key documents:
- PAN Card of the applicant or business entity
- Address proof such as an electricity bill, a rent agreement or an ownership document
- Current account cancelled cheque or the bank certificate of the same.
- Aadhaar /Passport of the proprietor/director/partner
- Photograph of the applicant
The documents must be uploaded in PDF or image form on the DGFT portal when the application is being filed.
How to Apply for IEC Registration Online?
The government has simplified the online IEC request process by utilising the DGFT site.
Step 1: Visit the DGFT site
You can begin at the official site of the Directorate General of Foreign Trade at www.dgft.gov.in. To see this, visit the home page and search for the IEC under the same page and click on it.
Step 2: Generate Your Profile
The first step in application is to register as a user. Enter a valid mobile number and email address to create an account.
Step 3: Complete the IEC Application Form (ANF-2A)
After logging in, move to the form to fill out the Import Export Code application (ANF-2A). Be sure to fill in all the important details, including business information, PAN number and bank details. Be certain to check every entry for submission.
Provide all the business and applicant required information correctly, such as bank account information, the address of the business and the PAN.
Step 4: Upload Documents
Load all the needed papers in the required formats.
Step 5: Submit the Application Fee
Submit the government fee (currently 500 rupees) by means of online money transfer systems, such as Net Banking, UPI, or by debit or credit card.
Step 6: Submit and Download IEC
After successful submission, the IEC certificate will be generated and emailed to the registered address within 1–2 working days. It can also be downloaded from your DGFT dashboard.
Benefits of IEC Registration
Registration of IEC has a number of benefits to business ventures joining the trading world:
- Legal Compliance: Importing or exporting services or goods in India is a legal requirement.
- Lifetime Validity: Once issued, an IEC can never be renewed, and there is no need to be in compliance with it.
- Customs Clearance: INDIAN customs clearance is done on IEC at the ports and airports.
- Convenient Forex Processing: The banks also need an IEC to handle foreign currency transactions when they are involved in imports or exports.
- Export Incentives Access: The IEC businesses can enjoy the facility of export promotion and tax rebates through schemes (such as RoDTEP, SEIS, etc.).
Conclusion
Be it as a new exporter, service provider or an import business, you must first apply for the Import Export Code, which is your initial step in international trade compliance. The process of registering with IEC has been facilitated thanks to the online registration, which has made the process quicker, more transparent, and accessible to businesses of all sizes. Bureaucratic procedures should not be an obstacle to your expansion into other countries; make your IEC and find your potential in the global environment.
