IMPORT EXPORT CODE | IEC REGISTRATION ONLINE IN INDIA

INTRODUCTION: 

Every businessman who is into serious business wants to grow their business beyond home borders. However, in this age of cutting-edge business competition, doing business around the world is not a child’s play. Before doing business around the world, one needs to follow many existing procedures and laws and get a different registration and license. 

Import Export Code, in short IEC, is a totally unique 10-digit alphanumeric code, which is issued by the Director-General of Foreign Trade (DGFT), Ministry of Commerce, Government of India to Indian Companies. This special code is issued against the PAN of an entity. For the purpose of import and export in India, it is necessary for the company or individual to get the IEC. A person or entity is not allowed to do any import or export without an IEC number.

For more information, please contact us on info@trijuris.com or call us Mb. No. 85100 58386 or 9310 717274.

ELIGIBILITY:

Entities which are eligible for IEC can be any kind of business organization, such as partnership, sole proprietorship, private companies, charitable or any other organizations that assist import and export agencies can sign up for import-export code, regardless of size. However, the Import Export Code is not required for the import or export of goods for personal use, which is by no means linked to trade, manufacture or agriculture. No business setup is required.

In the following circumstances, IEC is required:

  1. When an importer wants to clear his shipments from the customs, then it’s needed by the customs authorities. 
  2. When an importer sends money abroad through banks, then it’s needed by the bank. 
  3. When an exporter wants to send his goods, then its needed by the customs port. 
  4. If an exporter receives foreign currency money directly into his bank account, then its required by the bank.

Persons who are not eligible for the IEC are as follows-

  1. Persons who import and export for their personal reasons and who are not affiliated with trade, agriculture, and manufacturing.
  2. Using the Indo-Myanmar-China border areas, groups or persons importing or exporting goods to and from Nepal and Myanmar in one consignment must not exceed Rs. 25,000/-.
  3. According to Appendix – 3, Schedule 2 of ITC, exemption from IEC acquisition shall not apply to the export of materials, organic matter, specialized chemicals, equipments, and technology.
  4. Ministers or Departments of state and central government.

The IEC’s permanent numbers will be used for non-commercial PSUs and categories of importers or exporters who have been named against them for import or export purposes.

IEC REGISTRATION:

To run the import-export business successfully, it is required to get the IEC registered. The step by step process for online registration of IEC are mentioned herein below-

Step.1. Application Form-

First, the applicant needs to fill up the application form for IEC online on the official website of DGFT. After which, the applicant should click on the ‘Apply for IEC’ option. Here the applicant needs to fill in all details to register as a new user.

Once it is done, the applicant will receive an OTP on the registered mobile number and email id for verification.

After verifying his/her mobile and email, a username and password will be sent immediately to the registered email id. Now the applicant can log in with these credentials.

After the applicant logs in to his own account, he then selects the option ‘Apply IEC’.

Step 2: Documents-

Now, the person needs to click on the ‘Start Fresh Application’ option, to prepare all the essential documents, along with his/her identity and address proof. 

After this, the person is required to upload and submit bank details by clicking on the ‘branch’ option& also upload the certificate in respect of ANF-2A.

Then, the applicant needs to click on the option ‘Director’, to add up the details of the directors of the said company.

Step 3: Filing Application-

Once the said application for registration is completed, the person needs to file with DGFT via Digital Signature Certificate (DSC) and pay the application fee by clicking on the ‘EFT’ option to make the online payment. The amount INR 500 is required for the IEC Registration.

Once the payment procedure is over, the applicant can print the receipt by clicking on the ‘Print’ option. Thus he can easily take the printout of the IEC application.

Step 4: IE Code-

At last, when the application gets approved, then the person applying for IEC registration would receive the IEC in a soft copy from the respective Government.

After getting the IEC code, the applicant can easily engage in the import-export business.

For more information, please contact us on info@trijuris.com or call us Mb. No. 85100 58386 or 9310 717274.

DOCUMENTS REQUIRED FOR IEC REGISTRATION:

For the purpose of IEC registration, an applicant needs to submit some documents. Those are as follows-

  1. The said firm or company’s PAN card (photocopy).
  2. Photograph of the applicant.
  3. Memorandum of Association.
  4. Extract of Board Resolution.
  5. A cancelled cheque which easily states the candidate’s printed name or bank certificate.
  6. Address proof. You can include any of the following as proof of address:
  • Deed of Sale
  • Rent agreement
  • Lease Deed 
  • Electricity bill
  • Telephone Landline bill
  • Mobile post-paid bill  
  • MOU Partnership Deed
  • Aadhaar Card or Passport or Voter Id.
  • A self-addressed envelope for delivery of IEC certificate by registered post.
  • PAN card, photograph, and bank certificate is mandatory for all the applicants. 

IEC can also be applied offline. For the offline procedure, the steps are as follows-

Step-I: The person willing to do import-export business needs to prepare an application form in the specified format – Aayaat Niryaat Form ANF-2A format and file it with the respective Regional office of DGFT.

Step-II: After which, the applicant should download the form and fill in all the needful details in parts A, B, and D.

Step-III: Next, the applicant must sign on every page of the form.

Step-IV: The applicant is required to attach a self-attested copy of his PAN number, Bank account, and 2 photographs as well.

Step-V: Applicant should attach a demand draft of Rs. 250/- which will be payable to the DGFT Regional Office.

Step-VI: Applicant should also attach a self-addressed envelope with Rs. 30/- inside.

Step-VII: After successful completion of all the above-mentioned steps, the applicant should post the filled-out form, the envelope, and all the necessary documents to the regional office of DGFT.

Once the application procedure is completed, the applicant will receive an IEC allotment letter in the self-addressed envelope that had been attached by the applicant.

BENEFITS OF IEC REGISTRATION-

1. Business Expansion:

The IEC helps to deliver services or products to the global market, and by doing so, it promotes for the growth of the business.

2. Receiving Several Benefits:

Companies usually receive a number of benefits of their business from DGFT, depending on their IEC registration.

3. No return filling:

In the case of IEC registration, there is no need for return filling. Once assigned, there is no need to follow any kind of procedure to strengthen its effectiveness. Even in cases of export transactions, there is no need for any return filling.

4. Easy processing: Right after the filling of the IEC application, it takes 10 to 15 days to obtain the IEC code from DGFT. To get the IEC, there is no need to provide proof of any export or import.

5. Zero need for renewal:

The validity of the IEC is the same as the duration of the business life and does not require any renewal. Once acquired, it can be used for the business against all export and import transactions.

CONCLUSION:

Import Export Code is also treated as import-export license, which is a pre-requisite condition for import-export business around the world. Merchants who run the business of imported goods cannot run their business without the help of IEC, similarly, the exporter merchants won’t be able to run their business if they don’t have the required IEC. Without IEC, they cannot get benefits of any import-export scheme from DGFT either. 

The IEC is essential for importers to clear customs and remittances and to send money to foreign banks. The exporters also require the IEC to export their goods and receive money from foreign banks. Hence, no importer or exporter can legally work in India without obtaining an IEC.

For more information, please contact us on info@trijuris.com or call us Mb. No. 85100 58386 or 9310 717274.