Import Export Code
Import Export code i.e. IEC is a 10-digit unique code assigned to the businesses belonging to the EXIM regime. It enables entities to perform seamless cross-border trade of notified commodities. Among other key shipping documents, the IEC is the most important dossier as it legitimizes businesses to continue operating international trade. The apex regulator namely the Directorate General of Foreign Trade i.e. DGFT assigns the IEC after scrutinizing the prescribed application and supporting paperwork. Let’s understand how to apply for import export code and the legalities around it.
Understanding the significance of import-export code
Import-export code or IEC plays a pivotal in international trading. It legitimizes the entities that intend to export or import notified commodities. Falling under the Foreign Trade Policy, the IEC regulates all aspects of international trading, be it export, import, or retrieving cross-border payment.
Despite being a legal mandate, the import export code helps with several affairs, including
- Clearing consignments from customs
- Addressing legalities at the port authorities
- Receiving payment from the importer
- Reconciling payment issues with banks
- Securing insurance from the service provider against payment default
- Accessing government-initiated schemes and benefits
Note: As per the recent amendment made by the government, having an IEC is not a compulsion for those performing cross-border trade for personal purposes. Also, government-based entities, NGOs, and ministries seeking international trading of goods do not require IEC.
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Steps to secure the import export code from DGFT
Follow the given steps to secure the import export code from the Directorate General of Foriegn Trade.
- Navigate to the DGFT website.
- Explore the Services tab and click on the drop-down list
- Choose the ‘IEC Profile Management’
- A new window will appear on your screen; explore the ‘Apply for IEC’ option to proceed.
- Unfold the “register” option and fill out the information as required.
- Once done, click on the “Sent OTP” tab to proceed.
- Wait until you receive the OTP.
- Enter the OTP and tap on the Register tab.
- The portal will send a temporary credential to your number. Use the same to log on to your portal.
- Post successful login, explore the option namely ‘Apply for IEC’ and then click ‘Start Fresh Application’
- Enter details about the person running the business affairs. It could be a proprietor, director, or partner depending on the chosen company structure.
- Authenticate the form with a Digital Signature Certificate (DSC) and furnish the applicable fee.
- After successful fee submission, proceed to download the receipt from the subsequent window.
Note: After vetting the paperwork, the authority will send the soft copy of the IEC certificate to your email. Additonally, you can also visit the DGFT portal and explore the option namely Print IEC to download the registration. This option lies under the ‘IEC Profile Management’.
Documents you need to arrange for (Import Export Code) registration
Applying for IEC registration also requires arranging the following documents:
- Proof of establishment, incorporation, or registration of the partnership, society, proprietorship firm, company, HUF, etc.
- Individual’s, firm’s, or company’s copy of PAN Card.
- Individuals’ or company’s or firm’s cancel cheque copies of current bank accounts.
- Proof of address of business premises, such as sale deed, lease deed, rent agreement, or utility bills (electricity bill, telephone bill, or mobile bill).
- Proprietor’s voter ID, Aadhaar card, or passport copy.
- A self-addressed envelope for delivery of the IEC certificate by registered post.
Frequently Asked Questions Around Import-Export Code
Is IEC mandatory for commercial establishments seeking international trade?
Yes. An Importer-Exporter Code (IEC) serves as a mandatory legal permit for entities seeking cross-border trading of goods. Unless mentioned otherwise in the legislation, no entity can perform international trade without this code.
How much time does it take to get the IEC code?
In most cases, the IEC is issued instantly provided there are no issues with the paperwork or application.
I want to import goods for personal use; do I need to secure IEC?
No, securing Import export code is not mandated for individuals intending to import goods for personal use. In that case, documents like PAN will work.
What about the IEC updation; is it mandatory?
Yes, the IEC must undergo annual updation without fail to avert deactivation. Failing to update can result in the attenuation of rights tied to IEC. To fix this, the license holder must address the reactivation formalities. However, the authority may refuse to reactivate the IEC if they find any non-conformity or violation of rules during vetting.
What is the role of DSC while applying for IEC?
A Digital Signature Certificate (DSC) is used to validate the electronic documents and application. While applying for IEC, the portal shall prompt you to use DSC to authenticate the application form.
Conclusion
Import Export code (IEC) sits at the forefront of international trade as it is considered a mandatory legal document. Before you delve into the registration process, it is advisable to keep the supporting documents handy to avoid any complications. Also, avoid rushing through the registration process cited above as any mistake can compel you to follow the entire process again.
If you wish to avoid such complications you can also connect with Adviso for a hassle-free grant of IEC. We are among the top-notch service providers in India that ensure 100% client’ satisfaction.
Read Our Article: How To Check IEC Application Status Online?
