Directorate General of Foreign Trade (DGFT) issues a unique 10-digit registration code, which is IEC or the Import Export . This, code is mandatory for every import-export business. Additionally, it serves as an easy tracker of the consignment while aiding in the management of the same. Considering the benefits of advancement to e-IEC (electronic-IEC ), similar to the PAN card is initiated.
Benefits of IEC
Although, possession of IEC is obligatory to carry out import and export duties. Also, it is necessary to quote the same code during shipment and transactions using the current account. Nonetheless, it comes with a lot of advantages, such as:
- Availing benefits from customs that are from Export Promotion Councils (EPC) and DGFT
- It can easily elevate the establishment because it is a universally recognized identification. Thereby, transforming the individual into a registered exporter and proving access across the globe
- Highlight that, no annual fee pertaining to maintenance and retaining of the code. That is, on attaining an IEC it valid throughout life and need not be renewed.
- Importantly, any transactions done using IEC will remain documented, hence it can act as a form of proof in case of defaulters or faulty accusations.
Things to know before applying for IEC
Any exporter or importer is eligible to apply for an IEC before initiating international dealings. Further, there is an option of using an individual’s name or the company’s name while applying for the code. However, an application fee of Rs. 250 is charged along with with the application form, Aayaat Niryaat Form (ANF) 2A format. As mentioned earlier, DGFT under the Ministry of Commerce, the Government of India is in charge of issuing IEC. Also, nowadays it is issued in e- IEC by the said department following the guidelines of Foreign Trade (Regulation) Rules, 1993.
Few Exception Non-eligible scenarios
- Importers and exporters under clause 3 of the Foreign Trade Order, 1993
- Minister or department belonging to Central or State government.
- Any exporter or importer, dealing for personal use instead of being related to trade, manufacturing, or agriculture.
- In case exporting from Nepal, the CIF value should not exceed Rs 25,000.
- Similar fashion follows for imports from Myanmar and Indo- Myanmar border areas where the CIF value of one shipment must not exceed Rs 25,000.
- SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies) export trade has no eligibility to use IEC.
Requisite Necessities to Apply for IEC
- PAN number
- An active Current Account
- Bankers certificate
- Email, not mandatory. However, owning one will aid in faster communications
- IEC number, it is generated after paying the application fee
- The application form with all the necessary documents
The necessary document along with application form to apply for IEC registration are:
- Bank Certificate (ANF- 2A)/ a pre-printed canceled cheque
- Identity card (Aadhar card, license, passport, etc.)
- Address proof of the company/Firm
- Current Bank Account Details
- A copy of the self- attested PAN card
- Two passport size photos (attested by the banker of the individual)
- Covering letter on the letterhead of the company- requesting to issue IEC
- Receipt of the Paid Application fee
Procedure to Applying Online
- Visit the DGFT official website, once inside the website, choose the Services, IEC option that has the “Online IEC Application”. Click on the Application option
- Following that, fill the PAN card number and verify the same
- Next, click on the Apply for Fresh e- IEC option.
- Subsequently, enter contact details such as the mobile number and email- ID. Succeeding that, enter captcha code and click on generate a token
- On obtaining the token, verify the same by using one- time password
- The two tokens received earlier are for mobile and email. Respectively fill these token number in the given fields and submit
- After submitting the details, collect the Ecom reference ID for Application
- Ensuring that, shift to the next screen. Here, fill all the details such as name, address, contact details, established date and so on about the company
- Completing that, pay IEC application fees online via credit card, debit card, net banking, etc
- Finally, upload all the necessary documents in the image and in PDF format to get IEC certification
- Submit the application form along with the uploaded documents
Note that, instantly after submission, the computer will generate an IEC certification and send it to the applicant’s email- ID. Further, the applicant can check the status of the application by the option, Check IEC status on the website.
- The applicant need not complete the whole form in one sitting. Progress can be saved and continued later on.
- Never apply for more than one IEC using the same PAN card and current account.
- Refer if you need an IEC before applying.
- Provide correct information, as defaulter will be severely punished.
- After issuing the IEC, notify the same on the DGFT website and update the changes at least once a year.