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IEC (Import Export Code) Registration – Apply Online, Documents, Benefits

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What is an Import Export Code (IEC)?

With the global economy open to all, businesses are no longer restricted to local markets. From a small Indian garment exporter to Europe or an importer procuring state-of-the-art machinery from Japan, the genesis of international trade starts with an Import Export Code (IEC).

IEC is a 10-digit unique code that has been granted by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce, Government of India. It serves as the main identification number of any individual or company performing import or export operations. Without it, clearing customs, remittance through a bank, or taking advantage of export incentives is impossible.

We at Afleo make IEC registration easy by taking care of the application, documentation, and DGFT coordination to facilitate a hassle-free experience for companies.

Circumstances When an IEC is Necessary

IEC registration is required in various business circumstances, like:

  • Importing Products or Services: Any importer needs to possess an IEC to get goods cleared through customs and to remit funds to foreign vendors.
  • Exporting Goods or Services: An IEC is required by exporters for customs clearance as well as receiving funds from overseas buyers.
  • Accessing Export Benefits: DGFT initiatives such as RoDTEP, EPCG, Advance Authorisation, and SEIS/MEIS are all associated with IEC.
  • E-commerce Exports: When selling products on Amazon Global, eBay, or Alibaba, an IEC is necessary to enable overseas shipments.

Instances Where IEC is Not Required

There are certain exceptions where an IEC is not required:

  • Personal Use Imports: In case of importing goods for personal use and not for resale, IEC is not mandatory.
  • Specific Exemptions: Some types, like Government departments, charitable institutions, and bodies notified by DGFT, are exempted.

Steps Involved in IEC Registration

Applying for an IEC is a complete online process on the portal of DGFT. The procedure is as follows:

  • Online Application: Log in to the DGFT portal and complete the ANF-2A form for IEC registration.
  • Upload Documents: Upload the obligatory KYC documents like PAN, Aadhaar, and bank details.
  • Pay Application Fees: A minor government fee of ₹500 is levied.
  • DGFT Verification: DGFT checks the provided documents.
  • Issue of IEC: After the approval, the IEC is released in a soft copy format and sent via email to the applicant.

Afleo’s professionals assist the client every step of the way, and there are no rejections or delays.

Documents Needed for IEC Registration

The below-mentioned documents are usually needed for an IEC application:

  • PAN Card: Both individual and business.
  • Identification Proof: Aadhaar, Passport, or Applicant’s Voter ID.
  • Address Proof: Utility bill, rent agreement, or Company registration certificate.
  • Bank Details: Cancelled cheque or bank certificate to ensure an active business account.

For businesses, other documents like the incorporation certificate, the partnership deed, or the LLP agreement might be required.

Advantages of IEC Registration

IEC registration has several benefits for businesses:

  • Increased Business: Facilitates international market access and business growth opportunities.
  • Access to Government Benefits: Exporters are eligible to claim DGFT schemes, a duty-free exemption, and a tax refund.
  • No Filing of Returns: In contrast with GST, IEC does not entail any monthly or yearly compliance filings.
  • Easy Processing: The process of application is simple and online, and the processing times are speedy.
  • Lifetime Validity: IEC, once granted, is lifetime valid for the business. Renewal is not necessary.
  • Recognition and Credibility: An IEC gives credibility to businesses with international clients and banks.

Cost and Validity of IEC

  • Government Fees: ₹500 (one-time fee levied by DGFT).
  • Consultant Fees: Variable based on service providers like Afleo, who provide end-to-end applications.
  • Validity: Lifetime validity. After being issued, there is no renewal or expiry requirement, although periodic refreshment with DGFT is necessary.

Restricted Goods List (as per IEC regulations)

Although IEC permits companies to do business worldwide, some goods are prohibited or restricted by Indian trade policies. Import or export of these necessitates extra licenses or clearances:

  • Agricultural Products: Some seeds, plants, and organic products.
  • Chemicals & Pharmaceuticals: Hazardous chemicals, drugs, and restricted pharma goods.
  • Electronics & IT Products: Premium electronics, special monitoring of IT hardware.
  • Arms & Ammunition: Defence gear, guns, and other prohibited security goods.

Afleo helps procure the additional DGFT or customs clearances needed for such products.

How to Apply for an Import-Export License Online

A step-by-step guide to applying for the IEC is as follows:

  • Go to the DGFT portal (https://www.dgft.gov.in).
  • Click on Apply for IEC under the Services tab.
  • Register with your business PAN details.
  • Fill the ANF-2A application form.
  • Upload documents (PAN, Aadhaar, address proof, bank proof).
  • Pay the government charge of ₹500 online.
  • Submit and monitor your application.

After verification, the IEC is issued by DGFT and can be downloaded from the portal.

Afleo provides end-to-end DGFT consultancy to facilitate error-free applications and sanctions within the minimum possible time.

 

FAQ’s

1. How to obtain an import export license?

You may apply for an IEC through the online portal of DGFT. Afleo can help prepare and submit documents to facilitate smooth approval.

Government fee is ₹500. Service charges might be extra in case you appoint a consultant.

No, GST registration is not compulsory for obtaining an IEC, but it is recommended for businesses dealing with frequent trade.

IEC is a universal license for every import-export transaction, whereas an export license is required only for restricted/prohibited items.

No, IEC is issued against a PAN. One IEC can be issued for every PAN (individual or firm).

Associated Services Provided by Afleo

  • DGFT License Support – All forms of DGFT licensing needs.
  • EPCG License – Import capital goods at concessional duty.
  • Advance Authorisation – Import raw materials for export production without paying duty.
  • MEIS/SEIS Benefits – Claim incentives under DGFT schemes of export promotion.

Conclusion

IEC registration is the door to international trade for Indian companies. Whether you are a new venture venturing into e-commerce exports or a large-sized manufacturer venturing overseas, an IEC is an indispensable license. With Afleo, you can streamline the whole process, right from application and documentation to DGFT approval and compliance. Our experience means you obtain your IEC in no time and begin trading internationally without interruptions. Want to register your IEC? Get in touch with Afleo today for professional help with DGFT, customs, and international trade services.

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