Importance of Import Export Code

Importance of Import Export Code


An Importer -Exporter Code (IEC) is a key business identification number which mandatory for export from India or Import to India. This code has many names, like importer exported code, import export code, import export license, import export number, IEC code, IE license etc. You can issue this code in either your name or under company’s name. Once issued, it is valid for all its division / units /factories /branches. However, the IEC will still be separately issued by DGFT based on an application. The nature of the firm obtaining an IEC may be any of the follows-

The validity of this IEC code is for lifetime, that is, there is no need to renew it and the code is generated within 5-15 working days

Proprietorship, Partnership, LLP, Limited Company, Trust, HUF, Society. Import Export Code or IEC is a 10-digit code that a business or a person needs to import/export goods/services. This code is issued by DGFT (Director General of Foreign trade), Ministry of Commerce and Industries, Government of India. The validity of this code is for lifetime, that is, there is no need to renew it. This code is generated within 5-15 working days after the documents are submitted and all the corrections required are made.

IEC is required in the following situations

➢ When an importer has to clear his shipments from the customs then it’s needed by the customs authorities.

➢ When an importer sends money abroad through banks then it’s needed by the bank.

➢ When an exporter has to send his shipments then it’s needed by the customs port.

➢ When an exporter receives money in foreign currency directly into his bank account then it’s

Applying for New IEC

To Apply for Importer Exporter Code (IEC) on the DGFT portal you would require:

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

b) User should have an active Firms Permanent Account Number (PAN) and its details like Name as per Pan, Date of Birth or Incorporation. Note: These details will be validated with the Income Tax Department site.

c) Scanned Documents for Upload in the System (PDF Only and Max file size of 5 MB).

Documents Required

✓ Proof of establishment/incorporation/registration. o ( i. Partnership ii. Registered Society iii. Trust iv. HUF v. Others)

✓ Proof of Address can be any one of the following documents:

✓ Sale Deed, rent agreement, lease deed, electricity bill, telephone land line bill, mobile, post-paid bill, MoU, Partnership deed

✓ Other acceptable documents (for proprietorship only): Aadhar card, passport, voter id

✓ In case the address proof is not in the name of the applicant firm, a no objection certificate (NOC) by the firm premise’s owner in favor of the firm along with the address proof is to be submitted as a single PDF document.

✓ Proof of Firm’s Bank Account o ( i. Cancelled Cheque ii. Bank Certificate)

✓ User should have an active DSC or Aadhaar of the firm’s member for submission.

✓ Active Firm’s Bank account for entering its details in the Application and to make online payment of the application fee.

Cases where Export Import Code is not mandatory

Import Export Code or IE Code is required for every person or firm or company or entity engaged in export business in India. IE Code is provided by the Director General of Foreign Trade (DGFT) as required under the Foreign Trade Policy. No person is allowed to export or import goods without obtaining IE Code. Further, for availing benefit under Merchandise Export from India Scheme (MEIS) or Service Export from India Scheme (SEIS), IE code is a mandatory requirement. Here we list certain category of importers and exporters exempt from obtaining IE Code:

Ministries or Departments of Central or State Government.

Persons importing or exporting goods for person use not connected with trade or manufacture or agriculture.

Persons importing or exporting goods from or to Nepal, Myanmar through Indo-Myanmar border areas and China, provided CIF value of a single consignment does not exceed Rs.25000. In case of Nathula port, the applicable exemption ceiling is Rs.1 lakh. Exemption from obtaining IE code is not applicable in case of export of special chemicals, organisms, materials, equipment and technologies listed in Appendix 3 of Schedule 2 of ITC HS.