An Import Export Code, abbreviated as IEC, is an essential 10-digit business code provided by the Directorate General of Foreign Trade (DGFT) to businesses linked with import/export activities. The IEC code is mandatory to operate a business involved in importing or exporting goods in the Indian territory. It serves as an identification for import/export entities and doesn’t require filing or renewal. Importers and exporters use IEC while dealing with customs authorities and are required for international trade transactions. It is also helpful while tracking and regulating import and export goods and services. Importers are in need of IEC as they have to clear customs for receiving goods and also use it to make foreign bank payments. Exporters use IEC when sending shipments, receiving payments and multiple benefits like various schemes provided by the government and duty drawbacks. For Indian importer/exporter the IEC Number is essential as it facilitates smooth cross-border trade.
The Import Export Code (IEC) is a compulsory legal requirement for exports and imports as it’s a business recognition number in absence of which businesses will not be able to process any kind of import or export activity.An IEC helps government authorities to regulate international trade across the globe while adhering to trade policies and compliance with international laws. The IE code tracks and monitors international transactions. It helps in the promotion of customs clearance by making customs processes efficient and smooth. It helps the government in tracking accurate statistical trade data, policy-making and international negotiations. With the help of IEC the government easily generates revenue by calculating the taxes and duties during the import and export process. It ensures proper foreign exchange control and documentation of foreign exchange transactions. It promotes trade and national security by tracing the origin and destination of goods. Overall it maintains transparency and ensures economic stability and security.
- IEC registration helps businesses including e-commerce operators to get engaged into the global market. It helps in the global expansion of businesses and tap into international trade.
- A valid IEC helps businesses in availing benefits like government schemes, incentives and concessions. Businesses can take benefits like Merchandise Export from India Scheme (MEIS), the Service Export from India Scheme (SEIS), and from other customs and export promotion.
- Foreign Trade Policy of India has made IEC registration legal, Indian businesses cannot undertake any import or export activity without it.
- IEC registration helps in maintaining business simply as there are no compliance requirements from its post-registration.
- The procedure of obtaining IEC Code is not time consuming nor complex, as it requires minimum basic documents and less effort.
- IEC makes smoother and faster custom clearance and ensures seamless flow of goods and services.
- Only IEC registered businesses can participate in the International Trade Fairs and exhibitions.
- Only an IEC registered business can enjoy Market diversification and can explore new market opportunities. This way the businesses can reduce its dependency on a single market.
- Opening foreign bank accounts also requires IEC, and it also makes international transactions more convenient.
- IEC helps in easy business transactions thereby making it easier to conduct international trade.
- IEC registered importers and exporters enhance business operations and boost business reputation in the global market.
- With the help of IEC businesses can easily flourish and can experience brand building quickly as it enhances credibility and reputation of importer/exporter in the global market.
- With IEC businesses can make an easy custom clearance process, as it helps in reducing the delay of goods and services across borders. It ensures smoother, faster and seamless flow of goods in the global market.
IEC certificate validity is for lifetime and its registration is permanent. This means that it’s valid for all import or export transactions and its updating, filling and renewing is also easy. There is no requirement for filling or following any other compliance for importer or exporter. IEC is one time registration and needs no additional compliance, after incorporation it’s necessary for import/export businesses to obtain IE code.
IEC certificates can be obtained by firms like Proprietorship Firm, Partnership Firm, Company, Individual, Limited Liability Partnership (LLP), Limited Company, Hindu Undivided Family (HUF), Trust, Society and by other import or export entities. IEC certificate is essential for all such firms in order to make import/export transactions. Businesses that are yet planning to drive into import or export activities need to have an IEC beforehand.
Prerequisite that are required for the applicant who is looking to apply for IEC code online are Valid Login Credentials to DGFT Portal, A valid PAN card issued by income Tax Department of India, Firms or individuals bank account, business should be registered under ROC (Registrar of Companies), the applicant need to submit documents like valid identity proof, address proof, and business entities details to the DGFT office.
- PAN card of (company, individual, or form).
- Applicants Aadhar card, passport copy, voter ID, driving licence.
- Certificate of incorporation or partnership deed.
- Address proof such as electric bill, rent agreement copy, sale deed.
- Cancelled cheque leaf copy of Individual, company or firm’s current bank accounts.
- Self-addressed delivery envelope for IEC certificate by registered post.
For streamlined processing, and quicker response time StartupYo is just a click away, we provide more personalised support for IEC registration. We will make your registration process smoother and more efficient, and our experts will clear your doubts that most people have regarding IEC registration and can fix issues at much quicker rate. Our team and legal experts are famous for providing satisfactory conclusions, clear instructions, and dedicated customer service. We provide clear guidance and guidelines in order to make your IEC registration experience more efficient and user-friendly. We offer various benefits like convenience and accessibility. Our expert assistance is free and we guarantee satisfying IEC results.
Our IEC application process is completely digital and we provide step by step expert assistance and guidance in order to clear all your doubts. Once we will help you to get registered with your details then we will move towards the login section from where we will fill the IEC application form (ANF 2A format) for you. Before proceeding our experts review the application form for correctness and accuracy thereby removing the chances of cancellation of the application, which usually arises in maximum cases. Next our team will submit your IEC application after paying the prescribed fee via online banking operations. Additionally we will keep tracking your application status, Once IEC code will be generated by the DGFT we will help you in receiving it’s certificate within no time. During this whole process our team will keep updating you via texts, emails or calls. For this whole simple and fast process, StartUpYo will change you with the best price.
What is IE code?
IEC is a 10 digit official import export code issued by the director general of foreign trade for seamless import/export activities. It’s provided to the individuals, firms, businesses, or traders who are associated with the importing or exporting of goods and services at International level.
What types of firm’s can obtain IEC?
IEC certificates can be obtained by firms like Proprietorship Firm, Partnership Firm, Company, Individual, Limited Liability Partnership (LLP), Limited Company, Hindu Undivided Family (HUF), Trust, Society and by other import or export entities.
Can I apply for multiple GST registrations?
If a business operates in more than one state, the taxpayer must register for GST in each state separately. For example, if an automobile company sells in both Karnataka and Tamil Nadu, it must apply for GST registrations separately in both states.
Why is IE Code essential?
All importers as well as exporters need to mention their IE Code whole importing or exporting their goods and services from India. It’s essential for importers and exporters to mention IE Code while making foreign transactions in a bank account. Hence the code is required for Indian import/export businesses.
Is import/export possible without an IE Code?
No, import/export is not possible without an IE Code as it’s mandatory for importers and exporters. Without IE Code there is no possibility for import/export activities for businesses.
Why does IEC have to face deactivation?
IEC will be deactivated when it’s not updated within its specific time period. Once you successfully update it, the deactivated IEC can be reactivated.