IEC Registration (Import Export Code): Apply Online & Benefits for Import and Export Business

What is an Import Export Code?

Import Export Code, abbreviated as IEC, is a 10-digit Alphabet code issued to an importer by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, Government of India. Any trader or individual requires this to import or export goods and services.

History

The IEC system was initiated in the late 1980s to simplify foreign trade operations. Over the years, the system has undergone drastic digital transformation, making the application and management process hassle-free.

Present Relevance

The IEC is a unique identifier for businesses in India, allowing them to engage in international trade while adhering to international trade regulations.

Import and Export

• Import: Importing goods or services from another country into a country.
  • Example: An enterprise that imports cutting-edge machinery from Germany for manufacture.
• Export: Export involves the delivery of commodities or services to another country.
  • Example: Software services delivered by a software house in India to clients in the United States.

Why an IEC is Important to Exporters and Importers

An IEC is required in case of;

• Customs Clearance: Required for importing or exporting goods through customs.
• Bank Transactions: Facilitates the receipt and remittance of foreign currency.
• Global Market Access: This provides a window for trading globally.

Who Needs an IEC?

Principal Business Activities that Need IEC

• Producers: Export of Readymade Goods Such as Textiles, Electronics, or Chemicals.
• Traders: Importing raw materials or exporting them abroad.
• Service Providers: Providing foreign clients with IT, financial, or consultancy services.
• E-commerce platforms: Exporting through international online e-commerce platforms.
• Logistics Companies: Shipping cargo across the world.

Do Service Providers Require IEC?

Yes, service providers whose international transactions include receipt of payment in foreign currency must register with the IEC.

Documents required for Registration of IEC

The procedure for IEC registration requires particular documents to authenticate and identify the applicant. However, these vary according to the type of applicant, such as an individual proprietorship, a partnership firm, or a company. Below is an exhaustive list with exceptions and further details.

Required Documents for All Applicants

PAN Card

• All applicants must have a Permanent Account Number (PAN) card, as the IEC is linked to the PAN.
• The company's PAN is required for businesses, while individuals must provide their personal PAN card.

Identity Proof (For Individuals and Proprietors)

• Aadhaar Card: A primary document for identity verification.

Alternatively:

• Passport: This is for applicants without an Aadhaar card.
• Voter ID or Driving License: Accepted in rare cases.

Address Proof (For Business or Individual)

Proof of the business or personal address, including:

• Utility Bill (Electricity/Water): Not older than three months.
• Lease/Rental Agreement: For rented business premises.
• Property Tax Receipt for owned premises.

Bank Details

A Cancelled Cheque or a Bank Certificate is required to prove the applicant's account. The bank certificate should have the following details:

• Name of the account holder.
• Account number.
• IFSC and branch details.

Digital Photograph of the Applicant

All applicants and proprietors are required to submit a recent passport-size photograph in JPEG format that is not more than a month old.

Specific Documents Required by Specific Entity

For Partnership Firms

• Copy of registered partnership deed
• PAN cards of all the partners may be called for verification purposes

For Private/Public/LLP Companies

• Certificate of incorporation issued by RoC
• The company's memorandum of Association (MoA) and Articles of Association (AoA) include its objectives and operating structure.
• The board's resolution is for one director to sign and submit the IEC application.

For Trusts and Societies

• Registration Certificate of the trust or society.
• Trust Deed for trusts and the governing bylaws for societies.

For HUFs (Hindu Undivided Family)

• PAN card in the name of the HUF.
• Aadhaar card or identity proof of the Karta (head of the HUF).

Exceptions and Special Cases

Service Exporters Without Physical Goods: IEC applies to service exporters if foreign currency is involved. However, fewer documents might be required if the business has no physical office, like proof of bank details and identity proof only.

Exemption from IEC: IEC is not applicable in the following conditions:

• Goods/Services for Personal Use: Imports/exports not associated with trade, manufacturing, or agriculture.
• Government Agencies and Ministries: Ministries, departments, and registered charitable institutions are exempted.

Document Uploading Specifications and Format

• The documents are to be scanned and uploaded in PDF or JPEG formats.
• The file size should not exceed the limit specified for each file on the DGFT portal, usually 5 MB per file.
• Scanned documents should be readable and clear in order not to be rejected.

Common Errors While Uploading Documents

• Mismatch in Details: The PAN card name should be the same as the name of the same person whose name will appear on the bank certificate.
• Incomplete documents: Unreceived utility bills or signed certificates might cause a hold.
• Expired Proofs: Address proofs from three months back were not accepted.

Step-by-Step Procedure for IEC Registration

Online Application

IEC registration can be done online; it's not a challenging task if you follow the procedure correctly. Here's how to do it:

Step 1: DGFT Portal

• Access the official Directorate General of Foreign Trade (DGFT) website at: https://www.dgft.gov.in/.
• You may or may not have an account to access the website. If not, click the 'Register' button to create a login ID by providing details like your email address, phone number, and other necessary information.
• Log in using the credentials once registration is complete.

Step 2: Go to IEC Section

Once logged in, find the 'Services' menu on the dashboard.

Click on 'IEC Profile Management' and select 'Apply for IEC' from the dropdown menu.

Step 3: Fill up the Application Form (ANF-2A)

The IEC application form (ANF-2A) will appear. Fill up the following details:

• Applicant Type: Select whether the applicant is an individual, company, or LLP.
• Business Information: Enter the business name, PAN, nature of business, and address.
• Bank Information: Provide the bank account number, IFSC code, and certificate.
• Contact Information: Enter the applicant's email and mobile number.

Step 4: Upload the Need Documents

Scan and upload the required documents. Required documents include:

• PAN Card: It is required from the applicant
• Aadhaar Card or Passport: This is proof of identity for the applicant.
• Business Evidence: Rent agreement or utility bill with address proof.
• Bank Certificate or Cancelled Cheque: The Certificate will be issued by the bank for account details verification purpose

Ensure that documents are clear and legible and that the file size is appropriate for attachment. PDF and JPEG formats are usually considered.

Step 5: Pay Application Fee

• The application fee for IEC Registration is ₹500.
• Click the 'Proceed to Payment' button, select a payment gateway option, and make the payment successfully. Please save the payment receipt for further reference.

Step 6: Submit the Application

• Upon making payment, verify all the information contained in the form.
• Click 'Submit' to complete the application. An acknowledgment with a reference number will be issued. Retain this reference number for follow-up purposes.

Step 7: Application Processing

• DGFT will process your application. This may involve verifying the documents and details furnished.
• Ensure proper accuracy of uploaded documents to avoid delays.

Step 8: Obtain the IEC Certificate

• Once approved, the IEC is generated and issued digitally.
• You can download your import export certificate by logging into the DGFT portal and accessing the 'My Dashboard' section.
• The IEC is a 10-digit code that is valid for a lifetime.

Offline Registration

• Download the Form: Obtain the application form from the DGFT website.
• Complete the Details: Fill out the form accurately.
• Attach Documents: Include all necessary documents.
• Submit to DGFT Office: Visit the nearest office for submission.
• Receive Receipt: Retain the receipt for future reference.

How to Register without Hassle

• Accuracy: Ensure that all the details entered are correct and error-free.
• Documents Ready: Ensure all documents are scanned and available in the required format.
• Annual Update: Once you receive your IEC, update it annually on the DGFT portal.

ComplifyXpert is here to help you get your IEC quickly, from documentation to submission, so the process is hassle-free for our clients.

IEC Certificate: Issuance and Utilization

After application approval, a digital IEC certificate is created that can be viewed on the DGFT portal.

How long will it take?

The period required to receive an import export licence (IEC) often depends on how precisely the application form and additional documentation are submitted. With a streamlined online application, most of these applications are approved within 5-7 working days at the Directorate General of Foreign Trade (DGFT).

Key determinants of the timeline include:

• Completeness of Application: Any missing information or document discrepancies may be delayed.
• Verification Process: The DGFT thoroughly scrutinizes the application and may request more information if required.
• Digital Filing Accuracy: The processing period gets extended if the online form has errors.

At ComplifyXpert, we ensure your application is free from errors and supported by proper documentation, significantly reducing the chance of delays.

Uses of IEC Certificate

• Processing with Custom: Inward and Outward clearance at Customs.
• Bank Requirement: Conduct transactions in foreign exchange.
• Reclaim Benefits: Export-import benefits from the government are available.

Advantages of IEC

• Access Global Markets: To tap international trading chances
• Legislative Compliance: Complies with the India Foreign Trade policy of the Govt.
• Import/export Clearance: Simple process at import/export clearance Customs
• Benefits in Govt Scheme: Utilizing export sops and other forms of Govt
• Straightforward Monetary Dealings: Use foreign currency repatriation facilities
• Permanent: IEC does not need to be renewed annually.
• Satisfying Third Party: Secures third-party confidence in the partnership.
• Streamlined Documentation: Reduces customs and import and export license formalities.
• Brand Building: Enhances business image in international markets.
• Access to Trade Fairs: Attend international trade fairs.
• Tax Benefits: Export-related tax exemptions are available.
• Digital Integration: Online applications and updates are smooth.
• Market Diversification: Business is spread across various countries.
• Support for Startups: Crucial for new export-import businesses.

Reduction in Red Tape: Bureaucratic delays are reduced.

Updating or Modifying IEC

Businesses can modify or update their IEC details after registration. This is especially relevant for changes in:

• Business Name
• Registered Address
• Ownership Details
• Contact Information

Steps to Update IEC Details

• Log in to the DGFT portal using your credentials.
• Access the IEC Dashboard: Select the “Update IEC” option.
• Edit Details: Make necessary changes to the registered information.
• Upload Supporting Documents: Submit proof for the updated details (e.g., name change certificate, updated address proof).
• Acceptable for Issuance: If the validation is successful, the updated IEC certificate is ready for issuance.

ComplifyXpert will update all the requirements accurately to save you from difficulties and inconvenience.

Fees and Validity

• Registration Fees: INR 500 for the initial registration.
• Validity: Lifetime; no renewal is required.

Surrendering and Revoking IEC

• Surrender: An application is to be submitted through the DGFT portal to deactivate the code.
• Revocation of Suspension: A formal appeal with supporting documents is to be filed to reinstate a suspended IEC.

How to Renew an IEC Certificate?

The IEC Certificate issued by the DGFT is valid for a lifetime and does not need renewal. However, businesses must update their IEC details on the DGFT portal every year, even if no changes exist.

Annual Update Process:

Login to the DGFT portal.

• Access IEC Profile: Go to the "Update IEC" section.
• Verify Details: Ensure all information is accurate and up to date.
• Submit Update: Confirm the information for the current fiscal year.

If the IEC details are not updated annually, there is a risk of suspension that can influence international trade operations. ComplifyXpert offers reminders and helps to ensure your IEC remains active and compliant.

How do I check my IEC status online?

Checking IEC status is free and straightforward using the DGFT portal. It enables business houses to track the progress of their applications or even check the status of an already lodged IEC.

Procedure for Checking IEC Status

• Access the DGFT Portal: Open https://www.dgft.gov.in
• Login into Your Account: Using your registered details
• Go to the IEC Section: Click on "Check IEC Status."
• Fill up Details: Enter your PAN number and IEC application reference number.
• View Status: The status of your IEC will be displayed in real time.

You are getting professional support to track IEC status and resolve a related issue by choosing ComplifyXpert.

Is IEC Code Compulsory for All Indian Export Import Businesses?

Yes, the Import Export Code IEC is compulsory for all businesses dealing in international trade except in some sectors.

Scenarios Where IEC is Compulsory

• Importing Goods: Compulsory for getting clearance from the Customs.
• Export of Goods: Required for exporting products to other countries.
• Export of Services: Required if foreign exchange is received as payment.

Exemptions:

• Government Organizations: Import/export operations by the government may be exempted.
• Personal: Import/export of goods for personal use, not commercial purposes, does not require an IEC.

The IEC is a legal requirement to ensure compliance with India's trade regulations, and ComplifyXpert makes it easy for businesses from all sectors.