Import & Export code

Import Export Code (IEC) is a 10-digit code issued by the Directorate General of Foreign Trade (DGFT) to businesses or individuals engaged in the import and export of goods and services from India. It is mandatory for all importers and exporters to obtain IEC before starting any business transaction.

1. Facilitating International Market Access: How does the IE Code help businesses expand globally?

• The IE Code is essential for import and export operations, enabling businesses to enter the international market and expand their presence abroad.

2. Ease of Online Registration: How convenient is it to obtain an IE Code?

• The IE Code registration process is entirely online, streamlined, and requires minimal document submission.

3. Lifetime Validity: How long does an IE Code registration remain valid?

• An IE Code registration is valid for the lifetime of the business entity, eliminating the need for frequent renewals or updates.

4. Preventing Illegal Activities: How does the IE Code contribute to legal compliance?

• Obtaining an IE Code requires providing authentic information, which deters illegal transportation of goods across borders.

5. Access to Benefits and Subsidies: What benefits do registered entities receive?

• Registered businesses can avail subsidies, facilitate tax-free exports under GST with LUT filing, and claim refunds on taxes paid for exported goods.

6. Compliance Requirements: Are there specific compliance obligations associated with an IE Code?

• Unlike other tax registrations, businesses with an IE Code are exempt from annual filing or return filings, simplifying regulatory requirements.

In summary, the IE Code is crucial for businesses engaged in international trade, facilitating market access, ensuring compliance, and providing access to benefits and subsidies.

IEC is necessary to avail of various benefits such as subsidies, customs clearance, and other benefits from DGFT, banks, and government agencies. It is also useful in expanding business opportunities and increasing trade. Having an IEC also helps in building a brand reputation as a trustworthy importer or exporter.

There are no major demerits of obtaining an IEC. However, businesses may face legal issues if they engage in import-export activities without obtaining IEC.

The process of obtaining an IEC usually takes around 10-15 working days from the date of submission of the application. It may take longer if there are any discrepancies in the application or if further verification is required.

The documents required for IEC Code registration include:

Proof of establishment/ incorporation/registration: Depending on the type of firm, submit the establishment/ incorporation/registration certificate. This applies to Partnership, Registered Society, Trust, HUF, or other entities.

Proof of Address: Provide one of the following documents as proof of address:

Sale Deed

Rent agreement

Lease deed

Electricity bill

Telephone landline bill

Mobile post-paid bill

MoU

Partnership deed

Proof of Firm's Bank Account:
Provide either a Cancelled Cheque or Bank Certificate to validate the
firm's bank account.

Additionally, ensure the following:

The user should possess an active Digital Signature Certificate (DSC) or Aadhaar of a firm member for submission.

The firm's bank account should be active for entering details in the application and making online payment of the application fee.

The IEC Code registration is permanent and valid for a lifetime. It does not require renewal or filing of annual returns, unlike GST or PF registrations. The code remains valid as long as the business exists or until the registration is voluntarily revoked or surrendered.

Obtaining an IEC is mandatory for businesses or individuals involved in import-export activities. It has numerous benefits and is essential for availing of subsidies, customs clearance, and other benefits from DGFT, banks, and government agencies. The process of obtaining an IEC is simple and usually takes around 10-15 working days.