Import Export Code Registration
An Importer Exporter Code is a unique 10-digit code required for every import/export business owner in India. The code is issued by the Ministry of Commerce’s Director-General of Foreign Trade (DGFT) and does not require filing or renewal. Importers must use IEC to clear customs and ship their goods, as well as transfer money to foreign banks. Exporters rely on IEC to ship goods and receive funds from foreign banks. In short, no importer/exporter can do business in India without an IEC.
Why register for IEC? Benefits
- The IEC registration enables traders to enter the global market, including registration with online e-commerce operators.
- Businesses can benefit from government programmes such as the Merchandise Export from India Scheme (MEIS), Service Export from India Scheme (SEIS), and others administered by Customs and Export Promotion.
- There are no compliance requirements following registration, so running the business is relatively simple.
- The process of obtaining IEC is simple and requires only a few basic documents.
How to register for IEC? – A detailed IEC procedure
To obtain your Import Export license online, complete the simple IEC registration procedure outlined below.
Step 1: The Directorate General of Foreign Trade receives the online IEC application form in the format Aayaat Niryaat Form no. 2A. It is also possible to do it offline at the DGFT Regional office.
Step 2: Submit all required documents, including bank information and a DSC.
Step 3: The Import Export code will then be assigned, and the application will be processed further.
Step 4: Once the documents and application have been verified by the authorities, the import export license will be granted to the entity in the form of a soft copy.
Documents required for Import Export Code registration
The Documents Needed for IEC Registration Are Relatively Fewer. Only a few documents are required, and they are listed below for a better understanding.
- PAN card of the individual or company
- Copy of the entity’s government ID (Driving license/Aadhar/Voter ID)
- Incorporation certificate/Partnership deed
- Personal or company’s current bank account statement
- Address proof (Electricity bill/rent agreement/sale deed of the office location
- Copy of cancelled cheque leaf of the current account
Import Export Code Eligibility
Importer Exporter Goods registration is required for any type of business registration: sole proprietorship, partnership, private limited company, and charitable organization dealing with the export and import of goods.
Any type of business registration: sole proprietorship, partnership, private limited company, charitable organization dealing with import and export of goods, regardless of size, can register for import-export code. However, an IE code is not required for the import/export of goods for personal use that are unrelated to trade, manufacturing, or agriculture. There is no need to establish a business.
Apply For Import Export Code Today
Exemption of Import Export Code (IEC)
- Individuals who import and export goods for personal reasons unrelated to trade, agriculture, or manufacturing.
- Parties/individuals who import/export goods to/from Nepal and Myanmar with a single consignment must not exceed Rs 25,000 through Indo-Myanmar border areas and China (via NamgayaShipkila, Gunji, and Nathula ports).
- Exemption from obtaining IEC shall not be applicable for export of materials, organisms, special chemicals, equipments, and technologies (SCOMET), as listed in Appendix – 3, Schedule 2 of ITC.
- Ministries/Departments of Central and State Governments
The following permanent IEC numbers must be used for import/export purposes by non-commercial PSUs and the categories of importers/exporters listed against them.
Categories of Importers / Exporters
All Ministries / Departments of Central Government and agencies wholly or partially owned by them.
All Ministries / Departments of any State Government and agencies wholly or partially owned by them.
Diplomatic personnel, Counselor officers in India and officials of UNO and its specialised agencies.
Indians returning from / going abroad and claiming benefit under Baggage Rules.
Persons / Institutions / Hospitals importing or exporting goods for personal use, not connected with trade or manufacture or agriculture.
Persons importing/exporting goods from/to Nepal
Persons importing/exporting goods from/to Myanmar through Indo-Myanmar border areas
Importers importing goods for display or use in fairs/exhibitions or similar events under provisions of ATA Carnet. This IEC number can also be used by importers importing for exhibitions/fairs as per Para 2.29 of HBPv1.
Director, National Blood Group Reference Laboratory, Bombay or their authorized offices.
Individuals / Charitable Institution / Registered NGOs importing goods, which have been exempted from Customs duty under Notification issued by Ministry of Finance for bonafide use by victims affected by natural calamity.
Persons importing/exporting permissible goods as notified from time to time, from/to China through Gunji, Namgaya Shipkila and Nathula ports, subject to value ceilings of single consignment as given in Para 2.8(iv) above.
Non-commercial imports and exports by entities who have been authorized by Reserve Bank of India.
Commercial Public Sector Undertakings (PSUs) that have obtained a PAN must also obtain an Import Export Code number. Non-commercial PSUs must use the above-mentioned permanent IEC number.
IE CODE VALIDITY
Once registered, the Import Export Code becomes permanent and valid for the rest of one’s life. As a result, there is no need for renewal or updating. It is valid until the business closes or the registration is surrendered. Furthermore, the company is not required to make any monthly or annual filings such as GST, PF, etc.
The Export Promotion Council body of the Government of India issues the Registration-cum-Membership Certificate (RCMC). Businesses that deal with the export of restricted products, as well as those seeking concessions under Foreign Trade Policy, such as duty withdrawal, must have RCMC.
Our professionals will carry out the Import Export code registration process smoothly and efficiently online at the best rates. The entire procedure will take approximately ten days. We will assist you in obtaining an Import Export license online.
FAQs on Import Export Code
☑ What is IE Code? What is the Merchandise Export from India Scheme (MIES)?
Import Export Code (IEC) is a ten-digit number issued by the Director General of Foreign Trade, Department of Commerce, Government of India. It is a registration that is required for traders who import or export goods and services to or from India. The MEIS Scheme provides numerous rewards and incentives to exporters. Such incentives are provided to exporters at a set rate that varies by product.
☑ Who is required to have an Importer Exporter Code?
Any person or company involved in international trade, including the export and import of goods and services, must register for an IE code.
☑ Is there a tax imposed based on the IE Code?
The IE Code is not a tax identification number. However, depending on the product, a customs duty may be levied.
☑ Is it possible to export/import without an Importer/Exporter Code?
No, the IEC is a required document for the Government of India to recognize you as an exporter or importer of goods and services. However, if the value of the goods is too low, the customs authorities may allow first export by imposing nominal charges, which is extremely unlikely.
☑ Is it possible for individuals to obtain an IE Code?
Anyone acting as a sole proprietor of a business can apply for IE code Registration.
☑ What documents are required for IEC registration?
A copy of the PAN Card, proof of business address and constitution [Partnership deed, Incorporation Certificate, etc.,] and a cancelled cheque of the current account are required to obtain IE code registration.
☑ How long does it take to register an IE Code in India?
After submitting all required documents and the application form, Incorpz IEC Registration can be obtained from the DGFT in 7-10 working days.
☑ What is the penalty for failing to register for IE code?
Because trade is impossible without a valid IEC, the penalty imposed may be the payment of duty, depending on the quantity of goods.
☑ Can goods and services be exported and imported without the use of an importer/exporter code?
No, the IEC is a required document for the Government of India to recognise you as an exporter/importer. However, if the value of the goods is very low, the customs officer in charge may allow the first export (only once) by imposing penal charges.
☑ Is IEC used by the Customs Department?
Yes, the IEC number appears on all customs documents pertaining to exports and imports.
☑ How many IECs can one person obtain?
A single business owner is only permitted to obtain one License.
☑ Is it possible to make changes to IEC?
Yes. To make changes, you must submit a request to the DGFT and provide the necessary documentation. A government fee may be levied in this case.
☑ How do I cancel an IEC?
By submitting a formal request to the DGFT online, you can cancel your IE code. When the authorities receive such notification, they will cancel it electronically.
☑ Is it necessary to register a company in order to obtain an IEC?
No, a customer does not need to form a company in order to apply for an IEC Certificate.
Govt Limits Export Benefits to Rs 2 Crores Per Exporter!
Sep 01, 2020
Export benefits generated between September 1, 2020, and December 31, 2020 are limited to Rs 2 crores per exporter under the Merchandise Export from India Scheme (MEIS).
As a result, any new Import Export Code (IEC) generated after September 1 will be unable to file a claim under MEIS. Claims made during this period will be subject to a downward revision to ensure that they do not exceed the total allocated Rs 5,000 crores for claims.
Till 15th May No Furnishing Bonds for Import & Export
Apr 21, 2020
Due to the lockdown, the Central Board of Indirect Taxes and Customs (CBIC) has allowed businesses to import and export goods without showing bonds to customs officials until May 15th.
Paracetamol and Hydroxychloroquine (HCQ) allowed for export
Apr 9, 2021
Now that paracetamol and hydroxychloroquine (HCQ) are in the licensed category, they will be exported. The US government put pressure on the ban to be lifted. These medications aid in the fight against COVID-19 infection.