Importer Exporter Code (IEC) is a mandatory business identification number required for exporting from or importing to India. It is issued by the Directorate General of Foreign Trade (DGFT) and serves as a ten-digit unique number. The IEC is crucial for customs clearance and ensuring smooth import and export operations.
Incorporation Process
The following are the steps involved in obtaining an IEC:
Any business entity involved in import and export must obtain an IEC.
The Firm’s Permanent Account Number (PAN) is now the same as the IEC, but a separate IEC certificate is issued by the DGFT.
Importers must have both GST registration and IEC to clear customs; otherwise, the goods may be stuck at the port or incur demurrage charges.
The application process for an IE Code is entirely online, with minimal document submission requirements.
Documentation and Other Considerations
Obtaining an IEC helps businesses enter the global market and facilitates growth and expansion.
Benefits of obtaining an Import Export Code include access to international markets, online registration process, reduced document requirements, prevention of illegal goods transportation, eligibility for subsidies and refunds, and exemption from specific compliance requirements.
The nature of the firm obtaining an IEC can be a proprietorship firm, partnership firm, limited liability partnership, limited company, trust, Hindu Undivided Family (HUF), or society.
Prerequisites for applying for an IEC include valid login credentials to the DGFT portal, an active Firm’s PAN, a bank account in the firm’s name, and a valid address.
The IE Code registration is permanent and remains valid as long as the business exists or until the registration is revoked or surrendered.
Unlike tax registrations, there are no specific compliance requirements such as annual filing for the importer or exporter.
The provided details will be cross-validated with the Income Tax Department site during the application process.
In conclusion, obtaining an IEC is a crucial step for businesses involved in import and export. The process is entirely online, with minimal document submission requirements, and the registration is valid for the lifetime of the business
Documents Required
- PAN Card
- Aadhaar Card
- Incorporation Certificate