IMPORTER - EXPORTER CODE
IEC is a key business identification number which is mandatory for export from India or Import by a businessperson or trader. An Import Export Code (IEC) is a unique 10-digit number issued by the Directorate General of Foreign Trade (DGFT). Regulated by Provisions of the Foreign Trade Rules 1993. The IEC serves as an identification code for the entity and is used by customs authorities and other government agencies to track and monitor international trade transactions.IEC Code can be received from the DGFT within a time span of 10-15 days after the submission of the application. The validity of IEC Code remains for its lifetime. Although it should be renewed every year between April to June.
BENEFITS
LEGAL REQUIREMENT
Having an IEC is a legal requirement for engaging in import and export activities. Without an IEC, not be allowed to import or export goods and services.
IDENTIFICATION
The IEC serves as a unique identification code for importers and exporters. It helps customs authorities and other government agencies to track and monitor international trade transactions, ensuring compliance with regulations, and preventing illegal or unauthorized trade activities.
INTERNATIONAL TRADE
The IEC facilitates participation in international trade by providing a standardized identification code recognized by trading partners, banks, and other institutions involved in cross-border transactions. It establishes credibility and trustworthiness, making it easier to establish business relationships and negotiate trade deals.
CUSTOMS CLEARANCE
The IEC is essential for customs clearance procedures. It allows customs authorities to verify the legitimacy of import/export transactions, determine applicable duties and taxes, and ensure compliance with trade regulations and restrictions.
INCENTIVES
Having an IEC is a prerequisite for accessing various benefits, incentives, and schemes offered by the government to promote export-oriented businesses. These benefits may include export subsidies, tax exemptions, financial assistance, and preferential treatment under trade agreements.
TRANSACTIONS
Banks and financial institutions requires an IEC for processing international payments, issuing letters of credit, and other trade-related financial transactions. The IEC helps them verify the legitimacy of the transaction and comply with regulatory requirements.
ELIGIBILITY
IEC may be applied on behalf of a firm which may be a
Proprietorship
Partnership
LLP
Private Limited Company
Trust
HUF
DOCUMENTS
- Pan Card/Company’s pan card/partnership firm pan card
- Aadhar Card/ of all directors/ of all partner
- Electricity Bill or Rent Deed.
- Cancel Cheque/of company/of partnership firm
MODIFICATIONS
Modification in IEC required whenever there are changes in the updated information and there are other several reasons for it. Here are a few common scenarios:
- Change in Business Details: Name, Address, contact information, authorized signatories, or legal entity structure.
- Expansion of Product Line: If one plans to expand import/export activities to include new products or services that are not covered under existing IEC.
- Cessation of Operations: For import/export operations permanently, it is advisable to modify or cancel IEC to avoid any unnecessary compliance obligations or confusion.
- Mergers and Acquisitions: In the case of a merger or acquisition, where the ownership or legal entity structure of business changes.
- Errors or Corrections: If there are any errors or inaccuracies in y existing IEC, such as typographical mistakes or incorrect information
STEPS TO APPLY
- Visit the DGFT website.
- Click on the Services tab on the homepage
- Select the ‘IEC Profile Management option from the drop-down list.
- A new runner will open. Click on the ‘ Apply for IEC ’ option on the runner.
- Click on the ‘ Register ’ option. the Upload the needed details and click on the ‘ transferred OTP ’ button.
- Enter the OTP and click on the ‘ Register ’ button.
- Upon successful confirmation of the OTP, you’ll admit a announcement containing the temporary word which you can change after logging into the DGFT website.
- After registering on the DGFT website, login to the website by entering the name and password.
- Tap on the ‘Apply for IEC’ option on the DGFT website.
- Fill the operation form (ANF 2A format), upload the needed documents, pay the needed freights and click on the ‘Submit and induce IEC Certificate’ button.
- The IEC law will be generated by the DGFT.
Visit IEC DGFT to apply.
CS 24 is your consultant for the procedure, contact us today to know more.