IEC Registration
Importer Exporter Code (IEC Code) Registration
International trade opens up many opportunities for businesses in India. Whether you’re importing goods, exporting products, or expanding globally, an Importer Exporter Code (IEC) is essential to start trading internationally. This code is issued by the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce. For importers, the IEC is necessary for clearing customs and making payments to foreign banks, ensuring smooth trade. Exporters also need the IEC to send shipments and receive payments from customers abroad. It acts as a key to facilitate international business.
Import Export Code (IE Code)
The Import & Export Code (IEC) is a unique 10-digit number required by businesses for importing or exporting goods in and out of India. It is issued by the Directorate General of Foreign Trade (DGFT).
Having an IEC registration certificate is mandatory for any business involved in international trade. Before importing goods into India, the importer must ensure that the business has both GST registration and an IEC code to clear customs.
If the importer lacks both GST and IEC registration, the goods may get stuck at the port, leading to additional charges or even the possibility of the goods being destroyed.
Importance of Import Export Code
The Import and Export Code (IE Code) is essential for businesses looking to enter the international market. It helps businesses grow and expand by enabling them to import and export goods and services globally. Here are some key advantages of having an IE Code:
Access to the International Market: The IE Code is a must for entering the global market. It helps businesses expand internationally by making the process smoother.
Online Registration: Getting an IEC is a simple and hassle-free online process with minimal document submission.
Fewer Documents: Only a few documents are needed to obtain an IEC.
Lifetime Validity: The IE Code is valid for a lifetime, as long as the business exists. There’s no need to renew or update it unless the business is revoked or closed.
Prevents Illegal Goods Transport: To get an IEC, businesses must provide accurate information, which helps stop the transportation of illegal goods.
Benefits: Businesses with an IEC can receive subsidies from Customs or Export Promotion Councils. Exporters can also export goods without paying taxes by filing a LUT under GST. If they pay taxes, they can claim refunds.
Less Compliance: Unlike other registrations, businesses with an IEC don’t need to meet additional compliance requirements, such as filing annual returns.
In short, the IE Code makes international trade easier and offers several benefits to businesses involved in importing and exporting.
Validity of IEC Code
The IEC Code registration is permanent and valid for a lifetime, meaning there’s no need for regular updates, filings, or renewals unless the business is closed or the registration is revoked. Unlike other registrations, such as GST or PF, there are no annual filing requirements for IEC holders.
Since IEC registration is a one-time process with no additional compliance, it’s highly recommended for all importers and exporters to obtain the IEC as soon as their business is established.
Types of Firms Eligible for IEC Registration:
- Proprietorship Firm
- Partnership Firm
- Limited Liability Partnership (LLP)
- Limited Company
- Trust
- Hindu Undivided Family (HUF)
- Society
Pre-Requisites for Applying for IEC:
- DGFT Portal Credentials: You must have valid login details for the DGFT Portal (after registering).
- Firm’s PAN: The firm must have an active Permanent Account Number (PAN).
- Bank Account: The firm should have an active bank account in its name.
- Firm’s Address: A valid address for the firm must be available.
Note: The PAN and other details will be verified with the Income Tax Department.
In short, obtaining an IEC Code is simple and essential for businesses involved in international trade.
Documents required for IEC Code registration
1. Proof of Establishment/Incorporation/Registration:
- Partnership Firm: Partnership deed
- Registered Society: Registration certificate
- Trust: Trust deed or registration certificate
- Hindu Undivided Family (HUF): HUF registration document
- Other types of Firms: Relevant registration certificate.
2. Proof of Address:
You can provide one of the following documents:
- Sale deed
- Rent or lease agreement
- Recent utility bills (electricity, telephone, mobile bill, etc.)
- Memorandum of Understanding (MoU)
- For Proprietorship: Documents like Aadhar card, Passport, or Voter ID
- If the address proof is not in the firm’s name, submit a No Objection Certificate (NOC) from the owner of the premises along with the address proof.
3. Proof of Firm’s Bank Account:
- Cancelled cheque
- Bank certificate
4. Digital Signature (DSC):
- A Digital Signature Certificate (DSC) or Aadhaar of the firm’s member is required for submission.
5. Active Bank Account:
- Ensure the firm has an active bank account for entering details and paying the application fee online.
These documents should be submitted in scanned PDF format. Once submitted, the IEC registration process will proceed smoothly.
Streamline Your IEC Application with Captigma
Captigma can help you obtain an Importer Exporter Code (IEC) in India with ease. Here’s how we assist you:
- Information and Guidance: We provide you with all the details about the IEC application process, including eligibility and required documents.
- Application Preparation: We help you prepare the necessary documents and application form for IEC registration.
- Application Submission: Captigma will submit your IEC application to the Directorate General of Foreign Trade (DGFT) on your behalf, ensuring it’s done correctly and on time.
- Follow-up and Tracking: We track your application and follow up with the authorities, helping to resolve any issues or delays.
- IEC Certificate Delivery: Once your IEC is approved, we make sure you receive your IEC certificate.
- Expert Consultation: If you have any questions about IEC or international trade, our experts are available to guide you.
By choosing Captigma, you save time and ensure that your IEC registration is completed accurately and efficiently, allowing you to focus on your import and export business.