IEC CERTIFICATE

Import & Export Code is to be obtained by the business entity for import into or export from India. Import & Export Code is popularly known as the IEC number. Import & Export Code is a ten-digit unique number issued by the Directorate General of Foreign Trade (DGFT).

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NATURE OF IMPORT EXPORT CODE (IEC)

IEC is required by importers to clear customs and shipment, and to transfer money to foreign banks. Exporters require their IEC to send shipments and receive money from foreign banks. In short, no importer/exporter can operate in India without getting the IEC.

IEC registration certificate is mandatory for a business involved in import and export. Hence, before initiating an import of goods into India, an importer must ensure that the importing entity has GST registration and IE code – both of which are required to clear customs.

If an importer does not have both IE code and GST Registration, the goods will be stuck at the port and start incurring demurrage charges or could be destroyed.

BENEFIT OF IEC CODE

The IEC registration helps traders open the doors to venture into the global market, including registration in online e-commerce operators.
Businesses can avail government schemes like the Merchandise Export from India Scheme (MEIS), the Service Export from India Scheme (SEIS), and others from customs and export promotion
No compliance requirements pos registration and hence maintaining the business is relatively simple
The process of obtaining IEC is not tedious and can be obtained with minimal, basic documents.

IMPORTANCE OF IEC CODE

Businesses have a great option to enter the international market with the export and import of the products and the services they are involved in. The IE code is an essential requirement while entering the global market as it supports the growth and development of the business to a certain extent. There are various advantages of getting an Import Export Code. Here we have listed a few of them:

1. Online registration: The process to find the IE Code is entirely online and hassle-free with short document submission.
2. Less document requirement: It is not required to submit many documents to obtain an IEC.
3. Lifetime Validity: IE Code is a lifetime registration valid as long as the business exists. Hence, there are no issues with updating, filing, and renewing Import Export Code registration. The IE registration is valid until the company exists or the registration is not revoked or surrendered.
4. International market unlocks: As the IE Code is a requirement for the import and export business, they allow the products to reach the global market. IE code makes the entry of the international Indian company smoother and opens doors for growth and expansion.
5. Reduces illegal goods transportation: The most basic requirement for the Import-Export code is that you need to provide authentic information. Without giving proper information, IE code cannot be obtained.
6. Compliances: Unlike other tax registration, the person carrying import or export does not require to fulfill any specific compliance requirements such as the annual filing or the return filings.

DOCUMENT REQUIRED FOR IEC REGISTRATION

The documents required for an IEC registration are relatively easy to get together. Only a few documents are required, which are listed below.

PAN card of the company (not applicable in case of the proprietor)
Applicant’s PAN and Aadhaar card (driving license/Aadhaar/voter ID)
Incorporation certificate/partnership deed
Address proof (electricity bill/rent agreement/sale deed of the office location/ Sale Deed)
Copy of cancelled cheque leaf/banker certificate of the current account in the name of the company.
Other acceptable documents (for proprietorship only): Aadhar card, Passport, Voter id

NATURE OF THE NATURE OF THE FIRM OBTAINING AN IEC

The nature of the Firm obtaining an IEC may be any of the follows:

Proprietorship Firm
Partnership Firm
Limited Liability Partnership
Limited Company
Trust
Hindu Undivided Family (HUF)
Society

FAQs FOR IEC CERTIFICATE

Q1. Why IEC Code is required?

An Importer -Exporter Code (IEC) is a key business identification number which mandatory for export from India or Import to India. No export or import shall be made by any person without obtaining an IEC unless specifically exempted.

Q2. Who is exempted from IEC?

Ministries or Departments of the State or Central Government. Persons or entity is importing or exporting goods for personal use not connected with trade or manufacture or agriculture. Persons importing/exporting goods from and to Nepal provided that the CIF value of a single consignment does not exceed Rs. 25,000.

Q3. What is the validity of IEC?

IEC registration, once taken, is valid for a lifetime.

Q4. Is IEC code permanent?

If an IEC holder does not wish to operate allotted IEC, he may surrender the receipt, the issuing authority shall immediately cancel the IEC and electronically transmit it to DGFT and Customs authorities. An IEC allotted to an applicant shall have permanent validity unless cancelled by the competent authority.

Q5. What is IEC code example?

Import Export Code (also known as IEC code) is a 10-digit identification number that is issued by the DGFT (Director General of Foreign Trade), Department of Commerce, Government of India. It is also known as Importer Exporter Code.

Q6. What is new rule for IEC?

An IEC holder has to ensure that details in its IEC is updated electronically every year, during April-June period. In cases where there are no changes in IEC details same also needs to be confirmed online. An IEC shall be de-activated, if it is not updated within the prescribed time.

Q7. Who can apply for IEC?

An individual or a company who wants to do international business can get an IEC. Individuals can use either the name of their company or their name directly to apply for IEC.