IE CODE
- IEC registration is required by a person to export or import goods. It is a 10 digit code which is issued by the Directorate General of Foreign Trade (DGFT).
- All businesses which are engaged in the Import and export of goods require to get registered under an Import Export Code. The IE code has lifetime validity.
- Importers are not allowed to trade without this code and exporters can’t avail of the benefit of exports from the various departments such as DGFT, customs, and Export Promotion Council.
- The IE Code must be stated by importers while clearing customs. Banks are also required the importer’s IE Code while sending money abroad. For exporters, the IE Code must be stated while sending shipments. Banks are also required the exporter’s IE Code while receiving money from abroad.
WHO ISSUES THE IEC CODE?
The Director-General of Foreign Trade (DGFT) issues an Import-export code. The DGFT runs in collaboration with the ministry of commerce and industry.
BENEFITS OF THE IMPORT EXPORT CODE (IEC) REGISTRATION:
- Individual person: A individual person can also obtain IE Code.
- No Renewals: IEC Code issued by the DGFT has a lifetime validity so we do not have any requirement to renew every year, it’s just a one-time cost of the registration.
- No Annual Compliance: The IEC Code has no annual compliance, like returns filings, etc.
- Government Benefits: The Government of India promotes export activities in India, through IEC Code Registration, we can avail all the benefits of the export schemes from DGFT, Customs, and Export Promotion Council.
- International Exposure: The IEC Code helps to grow businesses from the local market to the international market.
PRE-REQUISITES FOR REGISTRATION FOR IEC:
The First and foremost step is to register on the DGFT portal, then enter valid Login Credentials to DGFT Portal.
Import and Export Code may be applied on behalf of any of the firms which can be a
- Proprietorship Firm
- Limited Liability Partnership
- Company
- Partnership Firm
- Trust
- Hindu Undivided Family (HUF)
- Society
It should be noted that the firm must have an active Firm’s Permanent Account Number (PAN) and the details like the Name of the firm as per Pan, Date of Birth, or Year of Incorporation.
The Firm should also have a bank account in the Name of the Firm and a valid address.
Note: The above cite details should be validated with the site of the Income Tax Department.
PROCESS OF OBTAINING AN IE CODE:
- Visit the website of the DGFT.
- On the homepage, select the ‘Services’ tab.
- Go to the ‘IEC Profile Management’ option from the drop-down list.
- A new page will appear and then click on the ‘Apply for IEC’ option.
- Click on the ‘Register’ option. Fill in the required details and click on the ‘Sent OTP’ button.
- Fill in the OTP and then click on ‘Register’.
- After successful validation of the OTP, the applicant will receive a notification containing the temporary password which the applicant can change later after logging into the DGFT website.
- After registering on the DGFT website, then log in to the website by entering the valid credentials i.e. user name and password.
- Click on the ‘Apply for IEC’ option.
- Fill out the application form (ANF 2A format), fill in the required details and upload the supporting documents, pay the required fees, and click on the ‘Submit and Generate IEC Certificate’.
- On successful submission of the application, The IEC Certificate will be generated by the DGFT.
Important Points:
- The first and foremost thing which everyone requires to start an Export Import business is the Import Export Code (IEC).
- It is the same as PAN. However, it is mandatory to apply for IEC and register with DGFT.
- The main objective of DGFT is to regulate and promote exports from India.
- The IEC Certificate is issued by the Directorate General of Foreign Trade (DGFT) which comes under the aegis of The Ministry of Commerce and Industry, the Government of India.
- It has a total of 36 branches across India.
- This code is issued to any individual or company.
