IEC [Import/Export Code]

Import Export Code Registration - An overview.

An Importer Exporter Code is a unique 10-digit code, which is requisite for every import/export business owner in India. The code is issued by the Director-General of Foreign Trade (DGFT), Ministry of Commerce and needs no filing or renewal. IEC is required by importers to clear customs and shipment, and to transfer money to foreign banks. Exporters require IEC to send shipments and receive money from foreign banks. In short, no importer/exporter can operate in India without getting the IEC.

Why register for IEC? Benefits

• The IEC registration helps traders open the doors to venture into the global market, including registration in online e-commerce operators.
• Businesses can avail government schemes like Merchandise Export from India Scheme (MEIS), Service Export from India Scheme (SEIS) and others from Customs and Export Promotion
• No compliance requirements pos registration and hence maintaining the business is relatively simple
• The process of obtaining IEC is not tedious and can be obtained with minimal, basic documents.

How to register for IEC? - A detailed IEC procedure

To get your Import Export license online, you will need to do the following simple IEC registration procedure.

Step 1: The online IEC application form in the format Aayaat Niryaat Form no. 2A is filed with the Directorate General of Foreign Trade. Alternatively, it could also be done offline at the Regional office of DGFT.

Step 2: All the required documents, including bank details and DSC, have to be submitted

Step 3: Next, the Import Export code will be allotted and the application will be processed further

Step 4: Once the documents and application are verified by the authorities, the import export license will be granted as a soft copy to the entity.

Documents required for Import Export Code registration

The Documents Required Are Relatively Less For Iec Registration. Only A Few Documents Are Required Which Are Listed Below For A Better Scope.

• 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

Exemption of IEC

• Persons undertaking import and export of goods for personal reasons and not connected to trade, agriculture and manufacture.
• Through Indo-Myanmar border areas and China (via NamgayaShipkila, Gunji, and Nathula ports), the parties/individuals who import/export goods to/from Nepal and Myanmar with single consignment must not exceed the value of Rs 25,000
• As listed in Appendix - 3, Schedule 2 of ITC, exemption from obtaining IEC shall not be applicable for export of materials, organisms, special chemicals, equipments & technologies (SCOMET)
• Ministries/Departments of Central and State governments

Following permanent IEC numbers shall be used by non-commercial PSUs and categories of importers/exporters mentioned against them for import/export purposes.

Below the table, we need to write Source: DGFT

Commercial Public Sector Undertaking (PSU) who have obtained PAN will, however, be required to obtain the Import Export Code number. The permanent IEC number as mentioned above shall be used by non-commercial PSUs.

VALIDITY OF IE CODE

Once registered the Import Export Code is permanent and becomes valid for lifetime. Hence, there is absolutely no need for renewal or update. It lasts until the business ceases to exist or the registration is surrendered. Also, the business does not have to do any monthly or annual filings like GST, PF, etc.

RCMC REGISTRATION

RCMC is Registration-cum-Membership Certificate issued by the Export Promotion Council body under the Govt of India. RCMC is required for businesses that deal with the export of restricted products, and those seeking concessions under Foreign Trade Policy like duty withdraw.