Import Export Code IEC

IEC required for transaction

Customs Clearance

When an importer imports goods from other countries, then at the customs port, he needs to produce the IEC certificate for clearing the goods from the customs port. Goods will be removed from the customs port only when all the required documents, along with duty, are paid by the importer, and IEC is one of the documents that will be required here. Similarly, when an Indian trader exports its goods outside the country, then IEC will be needed.

For importer banking purposes

When an importer sends money into a foreign country through the banking channel, then banks ask for an IEC certificate from the importer for such transactions. Without an IEC certificate, an importer can’t transact (transfer of money) to a foreign country.

Exporting of goods

When an Indian trader wants to export its goods to a foreign country, then at the time of export the Indian customs department will ask for an IEC certificate; without it, the trader can’t make the export. It is one of the important documents while making exports.

Exporter Banking Purpose

When the exporter receives money from the foreign importer in the bank account, then the exporter has to submit the IEC Import Export Code certificate to the bank for clearing the transaction.

Benefits of registration

 Business Expansion

Everyone wants to expand their company outside the boundaries of the domestic market in this era of cutthroat competition, and for this, every trader wants to trade with a foreign country, which will lead to an increase in the customer base and branding in foreign countries.

Other Benefits

After getting an IEC Import Export Code certificate, the registered entity can avail of several benefits for importers/exporters from the DGFT, Export Promotion Council, Customs, etc. It will also help in banking transaction settlement when foreign currency is involved at the time of export/import. Banks ask for the IEC certificate for such transactions.

No further compliances

Unlike other licenses or registrations, IEC Import Export Code is a one-time process, meaning no further compliance is needed to be done once after getting the registration certificate. This is a one-time and lifetime registration, and after registration, no annual returns or compliances need to be fulfilled.

No renewal

The IEC Import Export Code is valid over an entity's lifespan and does not require renewal. An individual/business will be entitled to use it against all export and import transactions after it is acquired. 

Steps for registration

Step 1. Verify PAN detail on DGFT site.

Visit DGFT’s website and go for enrollment of the IEC Importer Exporter Code. Over there, fill in your PAN detail and verify with CBDT data; once it verifies, then it will proceed further.

Step 2. Verify through OTP.

After CBDT verification, DGFT will redirect you for OTP verification; you have to verify your email and mobile through OTP.

Step 3. Fill the Form

Once verification is done, the IEC Importer Exporter Code form will be open in which manufacturer/seller/trader details need to be filled. Put the name of the business, then business details and address, then the next owner's details, and then the required attachments, like business address proof and bank canceled check copy, which need to be uploaded in PDF form.

Step 4. Attach the attachments.

After filing the details of the business and its owner, the next step is to upload the required document, which is business address proof (electricity bill/rent agreement/lease agreement/other ownership proof) and bank detail (canceled check/bank certificate).

Step 5. Make the government fee payment

After all this scrutiny, your form is once and after this makes the payment of government fees that is INR 500 (for registration) or INR 200 (for making modification in IEC Importer Exporter Code).

Step 6. Submit the form.

After all, please submit the application. After submission, the department will verify the information, and within 2-3 days, the certificate will be issued.

Document required for the registration

 PAN card of Entity

 PAN and Aadhar of Company’s Directors/Partners/Proprietor

 Address Proof of Entity (any one of the following)

• Rent agreement
• Electricity Bill
•  Sale deed
•  Ownership Proof

Features of IEC

The Import Export Code, or IEC, is a 10-digit code for the import and export of goods/services by a company or person. DGFT (Director General of Foreign Trade), Ministry of Commerce and Industry, Government of India, issues this code. This code is valid for a lifetime; that is, there is no need to renew it. This code is created within 5-7 working days of submission of the documents and all the correct information as required.

This code has many names, such as importers/exporters code, import/export code, import license for exports, import number for exports, IE code, IE license, etc. You may issue this code either under your name or under the name of the business. Once issued, it will be valid for all divisions/units/factories/branches thereof.

10-digit code (PAN number)

One-time registration

No renewal

One code for one business

One code is valid for all branches/factories/units with the same PAN

Governance under Customs act

Import does not involve remittance of foreign exchange.

In India, import and export are governed under the Customs Act 1962. This act tells us about when custom duty will be levied, how to calculate customs duty, when to pay the duty, the procedure of import-export, the consequences of non-payment of duty, and other provisions related to the export and import of goods.

Whereas the government has made the Customs Tariff Act 1975, under which the rate of duty for different products is specified. In the Customs Tariff Act, two schedules are mentioned: Schedule 1 deals with the rate of import duties, and Schedule II deals with the rate of export duties. There are only 49 items on which the government charges export duty, which are mentioned under Schedule II.

Customs duty applies to the tax levied when shipped across international boundaries on the goods. The goal behind the levying of customs duties is to safeguard the economy, employment, environment, citizens, etc. of each nation by regulating the movement of goods, especially prohibited and restrictive goods, into and out of any country.

Each good has a predefined duty rate, which is calculated on the basis of various factors, including where such goods were obtained, where such goods were manufactured, and what such goods are made from. Also, whatever you first carry to India should be declared in compliance with the customs law. For example, you must report the goods purchased in a foreign country and any gifts that you purchase.

Import of Restricted Items in Inadia

Restricted products can only be imported after the relevant regional licensing authority has issued an import license. The goods covered by the license shall be disposed of in the manner specified by the licensing authority, which the license itself should clearly indicate. ITC (HS) includes a list of the restricted products. For capital goods, an import license is valid for 24 months, and for all other goods, 18 months.

For importing such products, prior approval from DGFT is required under importing restricted products.

DIFFERENT CATEGORIES OF APPLICATIONS AND THEIR REQUIRED MANDATORY DOCUMENTS

Exempted Categories IEC No.

Importer-Exporter Code (IEC) numbers are not required for the following groups of importers or exporters:

• Exporters covered by clause 3(2) of the Foreign Trade (Exemption from Application of Rules in Certain Cases) Order, 1993, and importers covered by clause 3(1) [excluding sub-clauses (e) and (l)].
• Departments or ministries of the central or state government.
• people who are not involved in trade, manufacturing, or agriculture but are importing or exporting things for their own use.
• People who are importing or exporting goods to or from Nepal as long as the CIF value of each shipment does not exceed 25,000 Indian rupees.
• People who import or export items over the Indo-Myanmar border regions as long as the CIF value of a single consignment is under Indian Rs. 25,000.
• However, unless an export falls under category (ii) above, the exemption from acquiring an Importer-Exporter Code (IEC) number must not apply to the export of Special Chemicals, Organisms, Materials, Equipments, and Technologies (SCOMET) as mentioned in Appendix-3, Schedule 2 of the ITC(HS).
• The categories of importers and exporters listed against the following permanent IEC numbers shall utilize them for import and export purposes.

The following permanent IEC number shall be used by the categories of importer/exporters mentioned against them for import/export purposes.