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Import Export Code (IEC) License

International trade is a gateway to a world of opportunities for businesses in India. Whether you're looking to import goods, export products, or expand your business globally, having an Importer Exporter Code (IEC) is your key to entering the international market. This import and export code is issued by the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce. All the importers and exporters in India must know what is IEC Code.

For importers, the DGFT IEC and import and export license are indispensable for the clearance of customs and facilitating payments to foreign banks, ensuring smooth international trade transactions. Similarly, exporters rely on the IEC to streamline the process of sending shipments and receiving payments from overseas clients.

What is IEC Code (Import Export Code) ?

IEC Code Full Form is "Importer Exporter Code". Import and Export Code is to be obtained by the business entity for import into or export from India. Import & Export Code is popularly known as the IEC number. Import & Export Code is a ten-digit unique number issued by the Directorate General of Foreign Trade (DGFT).

DGFT IEC registration certificate is mandatory for a business involved in import and export. Hence, before initiating an import of goods into India, an importer must ensure that the importing entity has GST registration and IE code, both of which are required to clear customs.

Importance of Import Export Code

Businesses have a great option to enter the international market with the export and import of the products and the services they are involved in. The IE code is an essential requirement while entering the global market as it supports the growth and development of the business to a certain extent. There are various advantages of getting an import and export code.

Here we have listed a few of them:

  • International market unlocks

  • Online DGFT IEC registration

  • Less document requirement

  • Lifetime Validity

  • Reduces illegal goods transportation

  • Availing Several Benefits

  • Compliances

Nature of the Firm obtaining an IEC

The nature of the Firm obtaining an import and export license/registration may be any of the follows:

  1. Proprietorship Firm

  2. Partnership Firm

  3. Limited Liability Partnership

  4. Limited Company

  5. Trust

  6. Hindu Undivided Family (HUF)

  7. Society

Pre-Requisites for Applying for Import Export License/ Registration

Here are the pre-requisites for an IEC registration, such as DGFT IEC Login, PAN, etc:

  1. Valid DGFT IEC Login Credentials to DGFT Portal (After Registering on DGFT Portal)

  2. IEC may be applied on behalf of a firm which may be a Proprietorship, Partnership, LLP, Limited Company, Trust, HUF, and Society.

  3. The Firm must have an active Firm's Permanent Account Number (PAN) and details like Name as per Pan, Date of Birth, or Incorporation.

  4. The Firm must also have a bank account in the Name of the Firm and a valid address before the procedure of IEC Code apply.

Documents required for IEC Code registration

  1. Proof of Establishment/incorporation/registration

  2. Proof of Address

  3. Electricity bill / Rent agreement

  4. Partnership deed

  5. Aadhar card

  6. Proof of Firm's Bank Account

  7. PAN Card

FAQ's on Import Export Code

IEC Code Full Form is Importer Exporter Code. An Importer-Exporter Code (IEC) is a crucial business identification number mandatory for export from India or import to India. Unless specifically exempted, no person shall make any export or import without obtaining an IEC.

IEC number is a mandatory requirement to conduct import and export operations in India. Importers must mention their IEC while clearing customs, exporters must mention it while exporting goods, and RBI requires IEC for foreign remittances related to import/export of services.

PAN Card copy, business address proof, constitution of business (Partnership Deed, Incorporation Certificate, etc.), and a letter from the banker.

IE Code Registration is generally obtained within 10–15 working days after submitting all required documents.

No, IE Code is not a tax registration. No tax is levied based on IE Code, though customs duty may be applicable.

Any person intending to import or export goods or services to or from India must obtain an IE Code.

There is no penalty for not having an IE Code; however, import or export activities cannot be carried out without it.

IE Code is valid for the lifetime of the entity and does not require renewal.

IEC enables businesses to avail various benefits from DGFT, Customs, Export Promotion Councils, and other authorities.

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