Importer-Exporter Code (IEC) / What is IEC / Who Can Apply for an
IEC / Process for Registration of Importer Exporter Code
What is IEC?
The Importer-Exporter
Code (IEC) is a key business identification number issued by the Directorate
General of Foreign Trade (DGFT). It is mandatory for any person or
business involved in the import or export of goods from or to India, unless
specifically exempted under the Foreign Trade Policy.
IEC acts as a gateway
for international trade and is essential for clearing shipments from
customs, sending money abroad through banks, and availing export incentives or
schemes.
Although IEC is not
required for the export of services, if the service provider wants to avail
of benefits under the Foreign Trade Policy (FTP) — like duty drawback or
SEIS (Service Exports from India Scheme) — then having an IEC becomes
mandatory.
IEC and GST Integration
Post the implementation
of Goods and Services Tax (GST) in India, an important change was
introduced:
The IEC number is now the same as the Permanent Account Number (PAN) of
the business entity. However, an application still needs to be made to DGFT
to generate an IEC certificate. This application is mandatory for official
recognition as an importer or exporter.
Despite the PAN-IEC
integration, DGFT continues to issue IEC separately, and this process is
crucial for the businesses to be eligible for global trade documentation and
compliance.
Who Can Apply for an IEC?
Any legally recognized
entity in India involved in import/export can apply for an IEC. This includes:
- Proprietorship firms
- Partnership firms
- Limited Liability Partnerships (LLPs)
- Private Limited and Public Limited
Companies
- Hindu Undivided Families (HUFs)
- Trusts and Societies
In other words,
irrespective of the nature or size of your business, if you wish to engage in
cross-border trade of goods, you need to register for an IEC (unless exempted).
Pre-Requisites for
Applying for an IEC
Before applying for an
IEC, ensure the following:
1. PAN
(Permanent Account Number) of the firm or entity
2. Bank
Account in the name of the firm/entity
3. Valid
Address of the business – which may be verified by DGFT
4. Mobile
Number and Email ID for OTP and communication
5. Firm
registration details (like Certificate of Incorporation in
case of a company)
These pre-requisites
ensure that the applicant is a legitimate business with traceable
credentials.
Documents Required for
IEC Registration
To successfully apply for
IEC, the following documents are needed:
1. PAN
Card
– For identity verification of the firm/entity
2. Bank
Account Details – Including a cancelled cheque or
bank certificate
3. Aadhaar
Card
– In case of a Proprietorship firm, Aadhaar of the proprietor is
mandatory
4. Address
Proof – Any one of the following:
o Electricity
Bill
o Rent
Agreement
o Consent
Letter from owner
o Sale
Deed or Ownership Document
5. Mobile
Number and Email ID – Required for OTP verification
6. Certificate
of Incorporation – If the applicant is a company
All documents should be scanned
and in clear format, ready to be uploaded during the online registration
process.
Steps Involved in IEC
Registration (Online)
IEC registration is completely
online and user-friendly. Here’s a step-by-step guide to help you
through the process:
Step 1: Visit DGFT
Website
Go to the official
website of DGFT
Step 2: Register on the
Portal
- Click on the “Apply for IEC”
tab on the homepage.
- You’ll be redirected to a new page
where you need to click on “Register”.
- Fill in the required details (such as
Name, Email, Mobile Number, PAN).
- Click on “Send OTP”, enter the
OTP received, and click “Register”.
After successful
registration, you’ll receive a User ID and Password, which you can later
change after your first login.
Step 3: Login and Apply
for IEC
- Login to the DGFT portal using your
credentials.
- Navigate to the “Apply for IEC”
section on the dashboard.
- Click on the “New Application”
button.
Step 4: Fill in the
Application Form
The application form has
the following sections:
- General Information
– Type of firm, business name, PAN, address
- Details of
Proprietor/Partner/Director/Trustee – Names,
Aadhaar/PAN, date of birth
- Bank Details
– Bank account number, IFSC code, bank name
- Other Details
– Any other information as required
- Attach DSC (Digital Signature
Certificate) – Optional for some categories but
recommended for added security
Step 5: Make the Payment
Pay the required
government fee online using net banking, UPI, or debit/credit card. Once the
payment is successful, you’ll be redirected back to the DGFT portal.
Step 6: Download Receipt
and IEC
- A receipt will be generated
after payment – download and save it.
- The IEC will be sent via email
after successful verification.
- You can also log in to DGFT and click
on “Print IEC” under the “IEC Profile Management” section to
download the certificate.
IEC Profile Management
After registration, it's
important to maintain and update your IEC Profile regularly on the DGFT
portal.
The IEC Profile includes:
- IEC Number
- RCMC (Registration Cum Membership
Certificate) details from EPCs (Export Promotion
Councils)
- Industrial Registration
details
- Status Holder Certificate
(if applicable)
- Export Performance
(historical data)
- Address and Contact Details
Keeping this profile
up-to-date helps exporters avail various schemes and monitor their trade
performance effectively.
When IEC is Not Required
As per DGFT regulations,
IEC is not required in the following cases:
- For service exporters
who are not availing of benefits under FTP
- When exports/imports are done for
personal use and not connected to trade, manufacturing, or agriculture
- Exports/imports by government
departments and ministries
- UN agencies and other notified
international bodies
Validity and Renewal of
IEC
One of the advantages of
IEC is that it has lifetime validity. Once issued, there is no need
for renewal. However, modifications in the IEC details — such as
change in address, bank details, or ownership — need to be updated online
through the DGFT portal.
In case of failure to
update the profile even once in a year (between April to June), the IEC may
be deactivated. Hence, ensure you update the IEC profile annually,
even if there are no changes.
Common Mistakes to Avoid
While Applying for IEC
1. Incorrect
PAN details – The system will reject if PAN details
don’t match with the Income Tax database.
2. Wrong
email or mobile number – OTP verification is mandatory.
3. Unclear
or mismatched documents – Ensure all uploaded documents are
legible and match with PAN and address proof.
4. Not
updating profile yearly – Failing to do so may result in
deactivation of IEC.
Benefits of Having an IEC
- Legal permission
to engage in import and export activities
- Customs clearance
of shipments becomes easier
- Access to international markets
for Indian businesses
- Eligibility for benefits and schemes
under FTP like MEIS, SEIS, RoDTEP, etc.
- Builds credibility with
international buyers and suppliers
- Enables foreign currency
remittance processing through banks
Conclusion
The Importer-Exporter
Code (IEC) is a fundamental requirement for businesses planning to step
into the global trade arena. Whether you're a startup or a seasoned business
entity, having an IEC not only makes you compliant with Indian foreign trade
laws but also opens a world of opportunities for you in the
international market.
The registration process
is simple, online, and hassle-free, and the document once obtained is
valid for life. With the government actively supporting export initiatives, now
is the best time to make your mark globally with a valid IEC.
If you're looking to grow
beyond Indian borders, IEC is your first step.
Disclaimer: All the Information is based on the notification, circular and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
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