IEC Registration

What is an Import Export Code?

The Directorate General of Foreign Trade (DGFT) provides the import export code, or IEC, which has 10 digits, in exchange for the required application and cost. For organizations intending to begin an export-import business in India, IEC registration serves as a need for legal approval. Additionally, manufacturers, exporters, and businesses who continually import raw materials for the production of goods are required to comply.

Who needs IEC in India?

For IEC registration in India, the Directorate General of Foreign Trade requires the following.

• Both importers and exporters
• House of export
• Producer and exporter
• Manufacturing plants importing raw materials
• Importer of products who received a special license from the DGFT
• Organizations intending to do EXIM business

It should be highlighted that IEC is only accessible to organizations with Indian registrations. So, before participating in the IEC registration procedure, be sure to acquire the company certificate.

Value of the Import Export Code

By exporting and importing the products and services they offer, businesses have an incredible opportunity to reach the worldwide market. The IE code is a crucial need for joining the global market since it helps the firm expand and succeed to some level. Obtaining an import export code has a number of benefits. Here are a couple of them that we've listed:

Unlocking the global market: Because the IE Code is necessary for import and export operations, it enables the items to be sold elsewhere. The Indian company's introduction into the global market is facilitated by IE code, which also creates opportunities for development and expansion.

Online registration: Finding the IE Code is a simple, hassle-free process that only requires the submission of a few documents.

Few paperwork required: Obtaining an IEC does not need the submission of numerous documents.

Lifetime Validity: An IE Code registration is active for as long as the business exists. As a result, updating, submitting, and renewing Import Export Code registration are all without problems. The IE registration is still in effect as long as the company is still in business or it hasn't been cancelled or given up.

Reduces the movement of illicit items you must offer accurate information, which is the simplest criterion for the Import-Export code. IE code cannot be retrieved without the necessary information being provided. The shipment of unlawful products is not allowed under this criterion.

Avail Multiple Benefits: Both importers and exporters can greatly profit from IE code. The Export Promotion Council, Customs, and other agencies may provide assistance to the registered commercial organizations in the form of subsidies. Exporters can make exports without paying taxes by registering a LUT under GST. The exporter may request refunds of the taxes paid if exports are done with payment of taxes.

Compliances: In contrast to other tax registration, importers and exporters are not subject to any special compliance obligations, such as yearly filing or return filing.

Documents need to be supplied during online filing for IEC registration

IEC registration applicants must go to the DGFT website and complete the necessary e-forms. The following papers must be uploaded by applicants during the electronic filing process:

• Copies of business documents, such as partnership agreements and certificates of incorporation
• Managing Partner's DL, PAN, Voter ID, and passport
• Tenancy evidence of location Bank statement or canceled cheque (in the case of a joint firm)

The following are some benefits of IEC registration:

1. Global recognition: The government of India and other countries across the world both recognize the 10-digit IEC registration number. This helps in corporate growth and market expansion on a worldwide scale.
2. Access to government programs: Companies with IEC registration are eligible for a number of government programs, including the Export Promotion Capital Goods Scheme (EPCG), MEIS, and SEIS. These programs provide different incentives, subsidies, and advantages to companies who do import and export activity.
3. Facilitation of banking operations: at order to open a current account at a bank for international transactions, enterprises must first register as IECs. For companies involved in import and export activities, this facilitates simple and efficient financial processes.
4. Boosts credibility: Since IEC registration is a necessity for companies participating in import and export activity, it aids in boosting the reputation of the company. Additionally, it promotes the development of customer and governmental trust.
5. Business expansion: By engaging in international trade, IEC registration enables enterprises to grow. This aids in expanding the company's market share and income.
6. Tax advantages: Companies with IEC registration are eligible for a number of tax advantages, including customs duty exemptions, GST refunds, and savings in other taxes pertaining to import and export activity.

Situations in which the Import-Export Code (IEC) is not required

IEC is not required for all GST-registered traders, according to the government's most recent circular. In each of these scenarios, the trader's PAN will be regarded as a new IEC code for import and export purposes. Import Export Code (IEC) need not be used if the goods being imported or exported are only being used for private, non-commercial reasons. It is not necessary to get an import export code for export and import carried out by Government of India Departments and Ministries and Notified Charitable Institutions.

IEC Registration Validity and Termination

IEC registration is valid for life and is not renewed. In the event that an IEC registration is canceled, the following situation may result in its deployment:

• Importing or exporting restricted items
• Faking information in shipment paperwork to confuse customs authorities
• Disregarding the rules of customs
• Infringement of the rules outlined in the foreign trade policy

Get Importer Exporter Code Certification

The IEC Certificate will be sent to the user's email (used while applying for IEC). The IEC Certificate may be downloaded by the User if necessary after logging into the DGFT and utilizing the "Print Certificate" function under "Manage IEC."

The IEC must be sent to CBIC, and you may verify the transmission status by going to "My IEC" and comparing the IEC Status bar with "CBIC Transmission Status."

A major document required to start import-export operations is the Import Export Code. The IE code must be obtained for any exporting or importing of goods or services.IEC offers a wealth of advantages for company expansion. You cannot ignore the requirement for IE code registration since it is required. Through Legalstartup, you may apply for an Import Export code and receive it in 6 to 7 days.

Frequently Asked Questions