What is Importer Exporter Code(IEC): Why it is necessary and How can we get it?

An Importer Exporter Code (IEC) is a unique 10-digit identification number required by businesses or individuals involved in importing and exporting goods or services in India. It is required for any Indian entity or individual engaged in international trade. It is issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, Government of India. The IEC is mandatory for importing or exporting goods or services.

1. Mandatory for International Trade: An IEC is required to legally import goods or services into India or export them to other countries. Without it, international trade activities cannot be conducted.
2. Customs Clearance: It facilitates customs clearance at Indian ports and airports, allowing businesses to import or export goods without delays.
3. Banking Requirement: Banks require an IEC for processing payments related to import and export transactions. It enables the smooth transfer of money for international business.
4. Global Market Access: IEC allows businesses to participate in the global market, expanding their reach beyond local markets. It facilitates export activities and opens up new business opportunities abroad.
5. Government Incentives and Benefits: With an IEC, businesses can take advantage of various government schemes, such as the Merchandise Exports from India Scheme (MEIS) or the Service Exports from India Scheme (SEIS), which offer financial incentives for export activities.
6. No Renewals Required: Once an IEC is issued, it is valid for a lifetime. There is no need for periodic renewals, which simplifies the process for businesses in the long run.
7. Compliance with Foreign Trade Policy: Having an IEC ensures that the business complies with India's Foreign Trade Policy and legal frameworks for international trade.
8. Export Promotion: By obtaining an IEC, companies can register with export promotion councils or relevant authorities, gaining access to trade promotion events and export advisory services.

The IEC is an essential identification for anyone involved in import and export in India. It is not only a legal requirement but also crucial for smooth banking, customs operations, and taking advantage of global trade opportunities. Without an IEC, businesses cannot participate in international trade, missing out on potential growth avenues in the global market.

Why Do You Need an Importer Exporter Code (IEC)?

1. Legal Requirement: It is mandatory for businesses or individuals to have an IEC to conduct import-export activities legally in India.
2. Customs Clearance: IEC is required to clear shipments at ports or airports when importing goods into India or exporting goods to other countries.
3. Financial Transactions: Banks and financial institutions require the IEC to process international payments and remittances related to imports and exports.
4. Government Benefits: IEC is essential to avail benefits under various government schemes such as the Merchandise Exports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS).
5. Global Trade Expansion: Having an IEC opens up global markets and allows businesses to explore international trade opportunities.
6. Validity: Once issued, the IEC is valid for a lifetime and does not require renewal, simplifying the process for long-term trade operations.

Importer Exporter Code Registration Procedure

The Importer Exporter Code (IEC) registration process in India is a straightforward online procedure facilitated by the Directorate General of Foreign Trade (DGFT). Before starting any export or import activity the businessmen need to get importer Exporter Code now the question arises “How to get Importer Exporter Code ?”Below is a step-by-step guide for registering an IEC:

1. Visit the DGFT Website:
   • Go to the DGFT website
   • Create a new account if you are not already registered by providing essential details like name, email ID, and mobile number.
   • After successful registration, log in using the credentials.
2. Apply for IEC:
   • Once logged in, navigate to the "Services" section and select "IEC Profile Management" under "Apply for IEC."
   • Click on "Apply for IEC", which will direct you to the IEC application form.
3. Fill in the Application Form (ANF-2A):
   • Complete the ANF-2A form, which is the Application Form for issuing an IEC. The details required in the form include:
     • Name of the business/entity.
     • PAN (Permanent Account Number) of the individual or business.
     • Address and contact details.
     • Nature of the business (proprietorship, partnership, company, LLP, etc.).
     • Bank account details, including the account number and IFSC code.
4. Upload Required Documents:
   • Upload the following documents in digital format:
     1. PAN card of the applicant (individual or company).
     2. Identity proof (Aadhaar card, passport, voter ID, etc.) and address proof.
     3. Bank certificate or cancelled cheque (containing the business name, account number, and IFSC code).
     4. Digital photograph of the applicant (in case of individual/proprietorship).
5. Sign the Application: Use a Digital Signature Certificate (DSC) or Aadhaar-based e-signature to digitally sign the application form.
6. Pay the Application Fee: Pay the IEC application fee, which is ₹500, through online payment methods such as credit/debit card, net banking, or UPI.
7. Submit the Application: After filling in the form, uploading documents, signing, and paying the fee, submit the application.
8. Receive the IEC: Once submitted, the DGFT will process the application and verify the details. If all information is correct, the IEC will be issued electronically. The IEC certificate is sent to the registered email ID and can also be downloaded from the DGFT portal.

1. PAN card of the applicant or business.
2. Address proof (like Aadhaar card, passport, voter ID, electricity bill, etc.).
3. Bank account details (cancelled cheque or bank certificate).
4. Photograph (for individual/proprietor).
5. Company or LLP incorporation certificate (in case of company or LLP).
6. Digital Signature Certificate (DSC) (for online signing).

Typically, the IEC is issued within 1-3 working days after successful submission and verification of the application.

• IEC is required for both import and export of goods and services.
• It is a one-time registration and does not need renewal.
• No business can engage in import/export without obtaining this code.

In summary, an IEC is essential for any business or individual engaging in international trade in India to comply with legal norms, ensure smooth customs and banking processes, and avail government benefits. Global Jurix is one of the top law firm in delhi has carved niches in providing legal services to its clients. Import Export Code Registration services are also available with this legal firm.

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