Why do we need Import Export Code (IEC)

Why do we need Import Export Code (IEC)?

Introducing IEC

The Directorate General of Foreign Trade or DGFT, Ministry of Commerce and Industries, Government of India issues an Import Export Code or IEC to conduct export-import business in India. It is a 10 digit code and this code has permanent validation. This code is integral to all importers and exporters in India. However, there are a few exceptions regarding the rules and regulations attached to IEC.

1. Goods which are exported or imported by people for personal use cannot have access to IE code. Only individuals who are engaged in exporting or importing goods for the business manufacture or agriculture can obtain an IEC.
2. Importers or Exporters from Myanmar or Nepal should conduct business Indo-Myanmar border areas. Moreover, the transaction amount by no means should surpass Rs 25,000 in a single

Features of Import Export Code (IEC)

1. It is mandatory that every importer as well as exporter register for IEC.
2. DGFT, Customs, and Export Promotion Council guarantee benefits procured from the import or export. They cannot claim this revenue without this code.
3. There is no need to renew, IEC as once issued, it has lifetime validity.
4. Any property owner can obtain the code in their name, though it does not necessarily require establishing a business.
5. There is no filing of any return when it comes to IE Code.The import or export transactions are not required to be filed under DGFT.

IEC online application

There is a facility to apply online for Importer Exporter Codes (IEC) instead of submitting various documents and undergoing several procedures at various offices. The Directorate General of Foreign Trade (DGFT) has enabled online IEC application as well as permitted issuing of codes in a digital format. The essential documents that are required in order to obtain an IEC can be safely uploaded online. Moreover, the IEC online registration fee can be paid via net banking. The regional authority of DGFT processes all such applications online and generates the digitally signed e-IEC. Henceforth, this e- IEC is e-mailed to the applicants within two working days. However, an auto generated rejection e-mail will be forwarded to the applicant if the application is found to be erroneous or incomplete. Government IEC procedure It is easy to obtain an IEC with minimum effort.

1. To start with, an application must be dedicated to the regional department of the DGFT in the form of Aayaat Niryaat Form 2A which is duly filled.
2. All the important details concerning the business, directors or partners along with bank account details and a certificate provided by the bank have to be included in the ANF 2A.
3. The Permanent Account Number or PAN is mandatory to get an approval for an IEC
4. A single IEC can be granted against a single Permanent Account
5. The registered IEC of the Importer/Exporter is legitimate for all the factories or branches of the company.
6. All completed applications are usually processed within 2-3 days.

Eligibility for online application of IEC and other provisions

1. Without an Importer-Exporter Code Number, no export or import shall be can be conducted by an individual, unless specifically exempted. However, under certain conditions, an Importer/Exporter Code shall be granted by competent authority to few individuals.
2. The Registered/Head Office has to request for an IEC number to the licensing authority concerned, on behalf of the applicant.
3. The Licensing Authority, thereafter, shall issue an IEC number in the format as prescribed in Appendix 2B.
4. All the branches, divisions, units and so on shall be valid under the IEC number allotted to the applicant.
5. In the case of a misplaced IEC, the issuing authority accepts requests and approves the second copy of IEC number if only accompanied by an affidavit. Nevertheless, the following documents have to be produced to get the approval in that case.
6. Firstly, a request letter on the letter head for issuing a duplicate IEC.
7. An application form as per Appendix 2 and 3 in duplicate.
8. The copy of IEC OR IEC number
9. The copy of the lodged FIR.
10. A duly notarized. An affidavit on Rs.20/- stamp paper
11. An affixed with Rs.25/- postal stamp with self-address

Under any circumstances, if there are any modifications in the name and/or address or of IEC holder, the user is no longer eligible to import or This takes place precisely after 60 days from the date of such modifications. However, such misfortunes can be avoided if the status holders/the IEC holder/licensee have acquired a recognition certificate from the licensing authority.

Simple steps for Import Export Code Registration

1. Firstly, all the necessary documents required for the Import Export Code registration should be present to initiate the registration process. These may include the address proof, bank account certificate and more. In addition, if it is a company with an LLP agreement, then the certificate of incorporation and article of association is also needed.
2. Import Export Code online filing can be done by submitting or form to the Additionally, the application is to be duly signed by the applicant before filing.
3. A list of directors/partners of a company has to be written on the company’s letterhead before submitting the application.
4. Bank certificate along with the prescribed fees has to be submitted to DGFT.
5. Finally, an IEC will be issued to the applicant upon verification. This will complete the Import Export registration.

Documents required for obtaining IE code The primary documents needed for IEC application.

1. The Bank Receipt / Demand Draft is needed to provide proof of payment. The application fee of Rs. 1000/- should be drawn in favor of Zonal J DGFT, New Delhi.
2. The certificate is to be acquired from the Banker of the applicant in the format as mentioned in Appendix 18 A (Part B).
3. A copy of Permanent Account Number that is self –certified and issued by Income Tax Authority.
4. The photograph on the banker's certificate should be attested by the banker of the applicant.

Thus, this is “why Import Export Code is needed”. The IEC number is the validating India’s import-export business. Besides, IEC number can contribute immensely to gain the benefits procured from the exports/imports business. This can be collected from the DGFT, Customs, and Export Promotion Council and so on.