Import Export Code (IEC) is a 10 digit identification number that is issued by the Director General of Foreign Trade (DGFT), Department of Commerce, Government of India. It is also known as Importer Exporter Code. It is compulsory to have this code to to deal with export or import business. Import Export Code (IEC) registration is necessary for cross-selling of goods and services from India to other countries. It is required and compulsory for all Importers/Exporters to mention their Import Export Code while Importing/Exporting goods and services from India. Import Export Code (IEC) once issued can be used by the entity throughout its existence and does not require any renewal or filing. Once the company has obtained IEC, then the company can perform all their import export requirements without any issues.
- IEC acts as the primary proof that a firm is an importer/exporter
- It is mandatory to obtain IEC for undertaking export/import business
- A proprietor can also obtain IEC without registering his business
- Once issued, an IEC does not need any renewal
- IEC is not necessary for import or export for personal or governmental purposes
- Quoting an IEC is compulsory when importing or exporting goods
- IEC is compulsory for making foreign bank transfers in relation to business
- It is valid for all branches of importers or exporters business.
For all importers and exports it is necessary to get the Import Export License for Importing and Exporting goods.
The custom authorities approve or clear the shipments of an importer who has to clear his shipments from the customs if he has an IEC number.
Organizations can avail of different advantages from DGFT, Customs, and Export Promotion Council on import & export through the IEC.
Bank requires it when an importer sends money abroad through banks.
It is needed at the custom port where an exporter has to send his shipments.
It is required by the bank when an exporter receives money in foreign currency directly into his bank account.
The government of the other country verifies the trader when he is having the IEC registration number.
- IEC code holder can export goods and products and create a brand in the international market.
- DGFT, Export Promotion Council and Customs etc. provide several benefits to companies engaged in import/export on the basis of their IEC registration.
- IEC does not involve in the filing of any returns. Once IEC is allotted, there isn't any requirement to follow any sort of processes for supporting its validity. Even for export transactions, DGFT does not mandate for filing any returns.
- Obtaining IEC from DGFT is fairly simple and same can be obtained within a period of 10-15 days after submitting the application. No proof of export or import is required after getting IEC Code.
- Once obtained IEC code is valid for the lifetime of an entity and requires no renewal. IEC can be used by an entity against all export and import transactions.
- Import Export code also works as the government identity as one can show this identity number for clearance of the shipments. The various government benefits are also obtained by having an IEC registration.
1. Get prepared Digital Signature Certificate (DSC)
2. File signed Aayaat Niryaat Form no 2A with Regional office of DGFT for IEC online.
3. Submit required documents like ID Proof, Address Proof, Bank Details etc with 2A
4. Pay Import Export Code Registration Fee online
5. After approval DGFT will issue IEC Certificate / Number
- Personal or company's current bank account statement
- Copy of cancelled cheque of the current account
- PAN card number of the individual or company
- Copy of the entity's government ID (Driving license/Aadhar/Voter ID)
- Incorporation certificate/Partnership deed
- Address proof (Electricity bill/rent agreement/sale deed) of the office premises
Importer undertakes that import and export of goods for personal reasons and not connected with trade. Agriculture and manufacture are exempted from obtaining IEC.
Individuals who export/import goods to/from Nepal and Myanmar through Indo-Myanmar border areas and China with single consignment which does not exceed in Indian currency Rs.25,000 does not require IEC
Exemption from obtaining IEC shall not be applicable for export of Special Chemicals, Organisms, Materials, Equipments and Technologies (SCOMET) as listed in Appendix - 3, Schedule 2 of ITC (HS)
After implementation of the Goods and Services Tax, the traders have to declare only their GST Identification Number at the time of import or export.
With the implementation of the GST, GSTIN would be used for purposes of credit flow of IGST on import of goods and also for refund or rebate of IGST related to export of goods.
According to the circular issued by the government, IEC will not be mandatory for all traders who are registered under GST.
Export/ Import done by the Government of India Departments and Ministries, Notified Charitable Institutions need not require getting Import Export Code.
Import Export Code (IEC) is not required to be taken in case the goods exported or imported is for personal purposes and isn't used for any commercial purpose.
To expand the business and avail the government benefits the importer and the exporter requires to obtain the GST number as well as Import Export Code.