Import Export Code

Import Export Code (IEC) is an identification number necessary for the business involved in exporting from India or importing to India. No person shall make an import or export without having IEC or being exempted from the act.

It is not needed when the service provider is taking benefits in the Foreign Trade Policy. An IEC is issued similarly to the issuance of a PAN to the company. The difference is that it is separately issued by DGFT through an application.

The nature of the organizations is proprietorship, LLP, limited company, trust, HUF, and cooperative society. The organization needs a PAN card and opening bank account details. There are various benefits under government schemes.

Process of Import Export Code Registration

The provisions related to IEC are under the foreign trade (development and regulation) act, 1992, Foreign Trade (Regulations) Rules, 1992 and Foreign Trade Policy. The steps involved in the process of registration for IEC are as follows

Step 1 : Visit the Director General of Foreign Trade (DGFT) website.

Step 2 : Click on the ‘Services tab’ on the website.

Step 3 : Select the ‘IEC Profile Management’ option from the list

Step 4 : Click on the option of ‘Apply for IEC’ on the webpage

Step 5 : Click on the ‘Register’ button. Enter the details and click on the ‘Sent OTP’ option.

Step 6 : The next step in Import Export Code registration online is to enter the OTP received and click on the ‘Register’ button.

Step 7 : The successful validation of the OTP received a notification with a temporary password and change after logging into the DGFT website.

Step 8 : Once registered on the DGFT website, log in with the help of entering the username and password.

Step 9 : Click on the ‘Apply for IEC’ button on the DGFT website.

Step 10 : Fill in the ANF2A (Aayat Niryat Form 2A) application form with documents attached along with prescribed fees by clicking the ‘Submit and Generate IEC Certificate’ option. The application is filled with the regional office of DGFT through a digital signature certificate (DSC).

Step 11 : The DGFT conducts the import export code verification after the submission of ANF2A and the documents attached. The application can be either rejected or approved. The status of IEC code registration can be checked with two options:

• Checking of IEC on PAN number for registration under DGFT
• Verifying that IEC has come to the ICEGATE location. This can be verified by filing the IEC and the captcha code is shown on the screen.

Step 12 : The IEC code is generated and issued a certificate by the DGFT. For an online application, an e-IEC is approved. The certificate can be printed after generating the IEC code.

Earlier, the IEC code was not required to be renewed but after the amendment, the IEC code has to be renewed every year.

Documents Required for Import Export Code

The IEC code for registration for documents required are as follows:

• Individual or Firm’s Self-certified copy of PAN card
• Individual voter ID or Aadhar card or copy of passport
• Individual or company or copy of organization cancel cheque of current bank accounts and bank account details.
• In case of rented property, copy of rent agreement and utility bills of the premise.
• Two copies of the Passport size photo of the applicant with attestation of the bank.
• The applicant must ensure that he/she signs every page of the application.
• Copy of Application (Aayat Niryat Form 2A) in Prescribed form.
• Payment of Application fees

Exemptions Under Import Export Code

The IEC code is mandatory for importers and exporters, it is not necessary for all GST registration to have the IEC code. The following are the exemptions from applying for IEC:

• Central or State Departments
• Personal use does not come under trade or manufacture of goods or services
• Import or export from Nepal or to Nepal, Bhutan, Myanmar, China, the CIF value of a single consignment of goods which does not exceed Rs. 25000/- and for China:
• Import or export through Gunji and Namgaya Shipkila, not exceeding Rs. 100000/- and for Import or export through Nathula, not exceeding Rs. 200000/-.

Process of an IEC Certificate Download

The following are the features of Import Export Code:

• An IEC is a 10 alpha-numeric number assigned after the registration process is completed.
• It is like one PAN is one IEC
• The application is available online as per the detailed procedure given.
• The code is updated or renewed every year. It can be deactivated when it is not updated.

The process of downloading the Importer exporter code certificate is as follows:

• Visit the DGFT website with login using username and password.
• After the login is done, select the ‘services page’
• In the menu, click on the ‘IEC Profile Management’
• Click on the option ‘My IEC’ appearing on the screen. A new window will show the results of the Import Export Code number search on the screen.
• Click on the ‘Print IEC’ option once choosing the ‘Manage IEC’ button.
• Click on the ‘Print IEC’ button for downloading the certificate in PDF form.

Cancellation or Suspension of IEC License

The relevant provision of the act has provided the reasons for the suspension and cancellation of the IEC:

• Any Contravention under the rules of the Act
• Any Contravention under Foreign Trade Policy
• Any Contravention under customs, foreign exchange or any wilful defaulter
• When an import or export has been made in a prejudicial manner and the authorized officer has reasons to believe the prejudicial relationship between them.
• Any Contravention under import export code number example related to the provision of the act.

Before suspension or cancellation, IEC provides a reasonable opportunity of being heard by a given person.

Benefits of IEC Registration

The benefits of registration under the IEC code are as follows:

• Expansion of Business

  IEC is applied for reaching the product or services in the global market and for growing the business.

• Availing Government Schemes

  The companies can avail benefits of import or export from the DGFT, export promotion council, customs, etc. basis of their IEC registration.

• IEC Necessary at Customs

  The IEC code is submitted at customs with an entry in the bill of lading.

• Electronic Fund Transfer is Possible

  A new service for exporters allowing them to submit the import export code registration fees through the internet without any cash involvement in making the payment.

• Filing of Returns

  IEC is not required for the filing of any returns. The requirement is to follow the process for sustaining the validity. The export transactions are for any requirement for filing a return with DGFT.

• Ease for Processing

  The IEC code is obtained by registering on the DGFT website within a period of 10 to 15 days after submitting the application. The need to provide proof of export or import for getting the IEC code.

• The risk of Illegal Imports or Exports is reduced

  IEC provides a reduction in the risk of illegal transportation among the countries. It is a better way of administration for cross-border businesses.