IEC Certificate

Introduction to IEC or Import Export Code

Every Indian company conducting international trade must get an IEC Certificate to follow trade control rules. The Directorate General of Foreign Trade (DGFT) gives Import Export Code (IEC) as a necessary document to businesses. To support global trade businesses can use this exclusive 10-digit number when exporting and importing products. After obtaining an IEC Code, companies can enter world markets and grow their operations internationally.

What is the IEC Code?

A business pursuing foreign trade must obtain the IEC Code from DGFT. It is a 10-digit code given by the Ministry of Commerce and Industry of India to facilitate import and export operations. The IEC Code is an essential regulation that allows people and companies to start international trade operations in India.

This unique number helps identify international traders and lets authorities keep track of their trade activities for all countries. The government does not let businesses perform legal import or export tasks without an IEC Code.

IEC Code Registration is essential for several activities, such as:

• Clearing shipments from customs.
• Receiving foreign currency payments for export services or goods.
• Availing of government incentives, duty exemptions, and other trade-related benefits.

Who Requires IEC Certificate?

An IEC Certificate is essential for all individuals, businesses, and organizations involved in importing and exporting goods or services. Below are the entities that require IEC Code:

1. Manufacturers and Exporters: Businesses that manufacture goods and export them overseas.

2. Importers: Entities that import goods, machinery, or raw materials from foreign countries.

3. Service Providers: Professionals and organizations offering export-oriented services, such as IT firms and consultancy services.

4. Traders: Businesses dealing in international trade, including e-commerce exporters.

5. Charitable Trusts and NGOs: Organizations engaged in export-import activities may also require Import Export Code Registration in certain cases.

Benefits of Having IEC Code Registration

Obtaining an IEC Certificate provides several advantages, including:

1. Access to International Markets: One of the key benefits of IEC Registration is that it enables businesses to trade globally. With an active IEC Code, companies can legally import goods from foreign markets and export their products to international buyers, thereby expanding their reach and tapping into new market opportunities. This access helps businesses grow beyond domestic boundaries and diversify their customer base.

2. Legal Compliance: An IEC Code acts as proof that a business complies with the guidelines set by the Directorate General of Foreign Trade (DGFT). By obtaining this registration, businesses avoid penalties, legal complications, and the risks associated with unauthorized import-export activities. It establishes a business as a legitimate and compliant entity in the global trade ecosystem.

3. Government Incentives: Businesses with IEC Code Registration can benefit from various government schemes designed to promote exports. These may include duty exemptions, tax rebates, and other export-related incentives. By being registered, companies can avail themselves of these benefits, which reduce operational costs and improve profitability.

4. Smooth Customs Clearance: Clearing shipments through customs can often be time-consuming and complicated. However, having an IEC Code simplifies this process. It ensures that import and export consignments are cleared without unnecessary delays, making the supply chain more efficient and reducing potential bottlenecks in trade operations.

5. Simplified Bank Transactions: The IEC Code is essential for handling financial transactions related to international trade. Businesses need this code to receive payments from foreign clients and make payments to overseas suppliers through authorized banks. It helps facilitate secure and transparent cross-border payments, ensuring smooth financial operations.

Eligibility Criteria for IEC Registration

To apply for IEC Code Registration, businesses and individuals must meet the following eligibility criteria:

• Business Entity: The applicant must have a registered business in India, such as a proprietorship, partnership, LLP, or private limited company.

• PAN Card: A valid PAN card is mandatory for both individuals and business entities.

• Business Bank Account: The business must have an operational bank account linked to the PAN card.

• Address Proof: Valid address proof, such as electricity bills, rental agreements, or property documents, is required.

Documents Required for IEC Code Registration

To complete the IEC Register process. Applicants must submit the following documents:

• PAN Card: Copy of the PAN card of the individual or business entity.

• Identity Proof: Aadhar card, passport, or voter ID for individuals.

• Address Proof: Utility bills, rent agreements, or property tax receipts as proof of address.

• Bank Details: Cancelled cheque, bank statement, or bank certificate showing the business name and account number.

• Digital Signature Certificate or DSC: Required for online applications.

How to Apply for IEC Code

Applying for an IEC Code is a straightforward process that can be completed online through the official DGFT portal. Follow these steps for a successful application:

Step 1: Register on the DGFT Portal - To begin the process, visit the official DGFT (Directorate General of Foreign Trade) website. Create a new account by entering your PAN, email address, and mobile number. You will get an OTP to verify your identity on your mobile number. Once verified, set up your username and password to log in.

Step 2: Fill the IEC Application Form - After logging in, access the IEC application form (ANF 2A). Carefully fill all the details needed. These include:

• Business information like name, type of entity, address
• PAN details of the proprietor, partner, or company
• Bank account information linked to your business

Step 3: Upload Documents - Upload the necessary documents in the specified format. The key documents required include:

• PAN card
• Business address proof 
• Bank details 

Step 4: Pay IEC Registration Fees - Once the form and documents are uploaded, proceed to pay the IEC Code Registration Fees and Charges online. The fees can be paid via net banking, credit card, debit card, or UPI. After making successful payment, you will get a payment confirmation receipt.

Step 5: Submit the Application - Double-check all the information and documents uploaded to avoid errors. After verifying the details, submit your IEC application. Upon submission, you will receive an acknowledgment with a unique reference number, which you can use to track your application status.

Step 6: Verification and Approval - The DGFT will review your application and verify the submitted details. If everything is found to be accurate, your application will be approved. You will then receive your IEC Certificate, which includes your unique 10-digit Import Export Code (IEC). This certificate can be downloaded from the DGFT portal for future use.

IEC Code Registration Fees and Charges

The IEC Code Registration Fees and Charges are nominal and must be paid online during the application process. These fees are set by DGFT and may vary depending on the type of entity applying for the code.

IEC Code Validity

Once granted the IEC Code keeps working without expiration. A business does not need yearly updates for the IEC Code. DGFT needs businesses to submit updates on their database each time their business information changes.

How to Renew IEC Code?

As part of regular compliance with DGFT requirements, businesses must update their Information and Export Control (IEC) Code data even though the IEC Code itself does not need renewal annually. The following steps help you update your IEC Code records:

• Log in to the DGFT Portal: Access your account using your PAN and password.

• Update Details: Update all business records including contacts and bank accounts data

• Submit Verification: Submit the modified report for DGFT to verify and approve the changes

Deactivation and Surrender of IEC Code

If a business discontinues its import-export activities or wishes to surrender its IEC Code. It can be done through these steps:

• Log in to the DGFT Portal: Use your credentials to go to the IEC management section.

• Apply for Deactivation/Surrender: Apply to stop your IEC registration through a proper termination process that includes valid reasons.

• Approval by DGFT: After DGFT gives its approval your IEC code stops working and you will get official confirmation.

Role of Agile Regulatory

Agile Regulatory helps businesses with their IEC registration process. We make sure you follow all necessary regulations. Our team of professionals helps applicants manage all needed documents to verify and submit IEC forms with minimal trouble. With Agile Regulatory, you can gain the following advantages:

• Expert Assistance in IEC Code Apply
• Timely Updates on Regulatory Changes
• Support for Renewal, Modification, and Surrender
• Compliance with DGFT Guidelines

Whether you’re applying for an IEC Certificate for the first time or updating your existing code, Agile Regulatory is here to help streamline the process and ensure that your business complies with all regulatory requirements.