The important information regarding the requirement of an Importer Exporter Code (IEC), which is a crucial business identification number essential for both importing and exporting to and from India. Without a valid IEC, no person or business entity can legally engage in international trade.
As of the introduction of the Goods and Services Tax (GST), the IEC number is now issued under the same identity as the Permanent Account Number (PAN) of the firm. However, the IEC will still be separately issued by the Directorate General of Foreign Trade (DGFT) based on a formal application.
The Import & Export Code, commonly known as the IEC number, is a ten-digit unique identifier issued by DGFT. It is a mandatory requirement for businesses involved in the import and export of goods and services. Prior to initiating any import of goods into India, it is imperative that the importing entity has both GST registration and an IE code, as both are essential for customs clearance.
Failure to possess both an IE code and GST Registration can result in goods being held at the port, incurring demurrage charges, or even facing the risk of destruction.
The significance of the Import Export Code lies in its pivotal role in facilitating international trade and supporting business growth. It offers numerous advantages:
Global Market Access: IE Code is the key to unlocking international markets, allowing products and services to reach a global audience and promoting business expansion.
Online Registration: The application process for obtaining an IE Code is entirely online, making it a hassle-free experience with minimal document submission.
Minimal Documentation: The IE Code application requires relatively fewer documents for issuance.
Lifetime Validity: IE Code is a one-time registration that remains valid as long as the business exists, eliminating the need for regular updates, filings, or renewals.
Control of Illegal Goods: The stringent requirements for IE Code issuance ensure that only accurate and authentic information is provided, making it difficult for illegal goods to be transported.
Access to Benefits: IE Code holders can benefit from subsidies provided by Customs, Export Promotion Council, and other authorities. Exporters can also take advantage of tax exemptions and refunds on paid taxes.
Simplified Compliance: Unlike other tax registrations, IE Code does not involve extensive compliance requirements such as annual filings or return submissions.
Validity of IE Code: As previously mentioned, an IE Code is valid for the lifetime of the business and does not necessitate any additional compliance or filing, making it a valuable asset for all importers and exporters.
Nature of the Firm obtaining an IEC
The nature of the Firm obtaining an IEC may be any of the follows:
- Proprietorship Firm
- Partnership Firm
- Limited Liability Partnership
- Limited Company
- Trust
- Hindu Undivided Family (HUF)
- Society
Pre-Requisites for Applying for IEC
- Valid Login Credentials to DGFT Portal (After Registering on DGFT Portal)
- IEC may be applied on behalf of a firm which may be a Proprietorship, Partnership, LLP, Limited Company, Trust, HUF, and Society.
- The Firm must have an active Firm’s Permanent Account Number (PAN) and details like Name as per Pan, Date of Birth, or Incorporation.
- The Firm must also have a bank account in the Name of the Firm and a valid address before applying.
Note: These details will be validated with the Income Tax Department site.
Documents required for IEC Registration:
HUF:
- Photograph of the signatory applicant
- Copy of PAN card of the applicant entity.
- Copy of Passport (first & last page)/Voter’s I-Card /UID (Aadhar Card) /Driving Licence/ PAN (any one of these)
- Rental/Lease Agreement, in case office is rented/ leased; or latest electricity /telephone bill.
- Bank Certificate as per ANF 2A(I)/ Cancelled Cheque bearing preprinted name of applicant and A/C No
Proprietorship:
- Copy of PAN card of the applicant entity.
- Copy of Passport (first & last page)/Voter’s I-Card /UID (Aadhar Card) /Driving Licence/ PAN (any one of these)
- Copy of Partnership Deed.
- Rental/Lease Agreement, in case office is rented/ leased; or latest electricity /telephone bill.
- Bank Certificate as per ANF 2A (I)/Cancelled Cheque bearing preprinted name of the applicant entity and A/C No.
Society/Trust:
- Photograph of the signatory applicant
- Copy of PAN card of the applicant entity.
- Copy of Passport (first & last page)/Voter’s I-Card /UID (Aadhar Card) /Driving Licence/ PAN (any one of these)
- Rental/Lease Agreement, in case office is rented/ leased; or latest electricity /telephone bill.
- Registration Certificate of the Society / Copy of the Trust Deed
- Bank Certificate as per ANF 2A(I)/Cancelled Cheque bearing preprinted name of the Registered Society or Trust and A/C No.
LLP or Private Limited Company or Section 8 Company:
- Photograph of the signatory applicant
- Copy of PAN card of the applicant entity.
- Copy of Passport (first & last page)/Voter’s I-Card /UID (Aadhar Card) /Driving Licence/ PAN (any one of these)
- Certificate of incorporation as issued by the RoC
- Rental/Lease Agreement, in case office is rented/ leased; or latest electricity /telephone bill.
- Bank Certificate as per ANF 2 A(I)/Cancelled Cheque bearing preprinted name of the company and A/C No.
User should have an active DSC or Aadhaar of the Firm’s member for submission.
Active Firm’s Bank accounts for entering its details in the Application and making online payment of the application fee.
IEC standards are typically voluntary, but they can be adopted by governments as part of their regulations or legislation. In some cases, industries and organizations may require compliance with IEC standards to ensure product quality and safety.
The need for IEC certification depends on the industry and the specific product or system you're manufacturing. In some cases, IEC certification may be required to demonstrate compliance with safety and performance standards.
While applying for an Importer-Exporter Code (IEC), it's not mandatory to possess a Digital Signature Certificate (DSC). The IEC application can be authenticated using Aadhaar, and the inclusion of the DSC option is intended to enhance the security and reliability of the IEC issuance and modification procedures.
Yes, the annual updating of the IEC profile is a mandatory requirement. Failure to update the IEC profile will result in its deactivation. If an IEC is deactivated, it can be reactivated by successfully updating the profile, provided that no violations of the Foreign Trade Policy have occurred during the period of deactivation.
The Average time to receive is immediate from successfully submission of the application.
- Valid Digital Signature Token
- Valid Mobile Number and Email ID
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