To expand product/service in the International Market, one needs to obtain an IEC. But what is IEC? A 10-digit numeric code, issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce & Industry, is known as the Import Export Code (IEC). This code is mandatory for individuals or businesses wishing to engage in import or export activities in India. Without an IEC, importers face restrictions on bringing goods into India, and exporters cannot avail benefits, exemptions, or incentives from DGFT or Customs.
[To get complete details on how to start an Import Export business, refer our blog How to start Import Export Business in India]
Exempted Categories from IEC
You don’t need an IEC if you’re:• A Ministry or Department of the Central or State Government or a notified charitable organization.
• Importing or exporting goods for personal, non-commercial use.
• In some cases, GST-registered businesses can use their PAN directly as their IEC, depending on the nature of trade and customs requirements (check with your bank or customs officer for clarification).
Benefits of having an IEC
There are various benefits you can avail if you get yourself registered under DGFT:
- Explore and keep your foot forward in international markets.
- IEC for individuals has lifetime validity and thus, no need to renew it annually.
- A company can obtain certain benefits and incentives from DGFT and also from Customs and Export promotion council.
- With the help of IEC, records of all the import and export transactions can be kept, reducing illegal goods transportation.
IEC code for individuals?
Can an Individual Apply for IEC? Yes. Any Indian individual with a valid PAN and bank account can independently apply for an IEC, no business registration is required. You only need one IEC per PAN, and it remains valid for life.
Mandatory requirements
To justify your identity, the current documents required for IEC application are:• Scanned copy of a valid Permanent Account Number (PAN) (front and back).
• Proof of business or residential address.
• Bank details proof (a canceled cheque or a certificate from your bank).
• Proof of entity type (for companies, partnerships, or LLPs).
Note: A separate scanned photograph or designated bank names are no longer mandatory as per the updated DGFT portal requirements.
[To get complete list of documents required for the registration of the IEC code, refer our blog Documents required for IEC Code in India]
Procedure to apply for IEC Number
One can submit an online application to DGFT for the grant of IEC Number. It is a simple procedure consisting of the following steps:
- The application needs to be made in the Aayaat Niryaat Form 2A format to DGFT. You can submit an online application at DGFT website – http://dgft.gov.in.
- For submitting an online application to DGFT, you need to upload a scanned copy of all the necessary documents, i.e., PAN card, bank account details, photographs. To upload documents online, you need to keep in mind the following things
- Photograph, PAN Card and Passport should be submitted in gif format.
- Bank Certificate should be submitted in PDF format.
- Canceled Cheque, Voter ID in either Gif/PDF format.
- While applying online, you need to make an electronic payment for the fee through net banking of any designated bank account.
- Before submitting an application, make sure that:
- All the details are correct and matched with documents.
- The requisite fee is paid
- DGFT region is appropriately selected.
Once the documents submitted are verified by government authorities, DGFT will allocate you an eIEC number. You can start doing your business with the soft copy you have received on your email. No hard copy of IEC is issued by DGFT.
[To get complete process for the registration of an IEC number, refer our blog How to Apply for IEC Code Online – Step by Step Guide]
Conclusion
Always keep in mind that only one IEC can be granted against one PAN card. If there is more than one IEC issued against one PAN Card, it will be considered void and applicant must surrender it for cancellation.
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