What is Import Export Code?
The Import Export Code (IEC) is a unique 10-digit identification number required by any business or individual in India that wishes to engage in international trade, including importing or exporting goods or services. Issued by the Directorate General of Foreign Trade (DGFT), the IEC serves as a mandatory prerequisite for anyone involved in overseas trade. Without an IEC, businesses cannot legally conduct cross-border transactions, making it essential for the smooth functioning of international commerce.
Benefits of Import Export Code
- 1. Overseas Trading
- IEC is a crucial requirement for businesses looking to expand globally. It allows companies to engage in overseas trading activities, facilitating the import and export of goods and services. This code enables businesses to explore new markets and grow their international presence.
- 2. Legalizes Business Overseas
- Having an IEC ensures that the business is legally authorized to conduct trade with foreign entities. It serves as a formal acknowledgment from the Indian government that the business is complying with international trade laws.
- 3. Online Service
- The IEC application process is fully online, making it convenient for businesses to obtain the code without excessive paperwork or in-person visits. It is managed through the DGFT’s online portal, allowing businesses to apply from anywhere in the country.
- 4. Necessity for Customs Clearance
- IEC is a necessity for customs clearance during import and export. Without an IEC, goods cannot be cleared at customs, making it a fundamental document for any business engaged in international trade.
- 5. Facilitates Electronic Fund Transfer (EFT)
- IEC simplifies the electronic fund transfer process for import-export transactions. It ensures that international payments and receipts can be processed efficiently, enhancing the speed and security of cross-border financial transactions.
Procedure for Obtaining Import Export Code
The process for obtaining an IEC involves the following steps:
- Step 1: Registration on Government Portal
- The applicant must first register on the official DGFT website. A user ID and password are created to initiate the IEC application process.
- Step 2: Documentation
- The next step involves gathering the required documents, including the PAN card of the business entity, address proof, and bank details. These documents must be uploaded digitally during the application process.
- Step 3: Application for Import Export License
- Once registered, the applicant must fill out an online application form, providing business details and other required information. This form is then submitted along with the necessary documents.
- Step 4: Verification by DGFT
- After the application is submitted, the DGFT verifies the provided details and documents. If any discrepancies or issues are found, the applicant may be asked to provide additional information or corrections.
- Step 5: Approval and Issuance of IEC Code
- Once the verification process is complete, the DGFT approves the application, and the IEC is issued. The code is sent to the applicant via email and can be downloaded from the DGFT portal.
Import Export Code Renewal and Validity
IEC is a permanent registration, and it does not require renewal under normal circumstances. Once issued, the IEC remains valid for a lifetime. However, if there are any changes in business details, such as a change of address or ownership, these must be updated with the DGFT to keep the registration current.
Documents Required for Import Export Code
To apply for an IEC, the following documents are required:
- PAN of the Business Entity: The PAN card of the entity applying for the IEC.
- Address Proof: Proof of the business’s registered address, such as an electricity bill or rental agreement.
- Bank Account Details of the Business: A canceled cheque or a bank certificate providing details of the business’s bank account.
- Digital Signature: A digital signature certificate (DSC) for online verification.
Conclusion
The Import Export Code is an indispensable tool for businesses engaging in international trade. It not only legitimizes overseas trading activities but also offers numerous benefits, including customs clearance, ease of electronic fund transfers, and compliance with global trade standards. By following a straightforward registration process and maintaining necessary documentation, businesses can obtain their IEC and unlock new opportunities in the global market.