Import Export Code

Why register for IEC? Benefits

• The IEC registration helps traders open the doors to venture into the global market, including registration in online e-commerce operators.
• Businesses can avail government schemes like Merchandise Export from India Scheme (MEIS), Service Export from India Scheme (SEIS) and others from Customs and Export Promotion
• No compliance requirements pos registration and hence maintaining the business is relatively simple
• The process of obtaining IEC is not tedious and can be obtained with minimal, basic documents

IEC Procedure

- A detailed IEC procedure

To get your Import Export license online, you will need to do the following simple IEC registration procedure.

Step 1: The online IEC application form in the format Aayaat Niryaat Form no. 2A is filed with the Directorate General of Foreign Trade. Alternatively, it could also be done offline at the Regional office of DGFT.

Step 2: All the required documents, including bank details and DSC, have to be submitted

Step 3: Next, the Import Export code will be allotted and the application will be processed further

Step 4: Once the documents and application are verified by the authorities, the import export license will be granted as a soft copy to the entity.

Document Required

Documents required for Import Export Code registration

The Documents Required Are Relatively Less For Iec Registration. Only A Few Documents Are Required Which Are Listed Below For A Better Scope.

• PAN card of the individual or company
• Copy of the entity's government ID (Driving license/Aadhar/Voter ID)
• Incorporation certificate/Partnership deed
• Personal or company's current bank account statement
• Address proof (Electricity bill/rent agreement/sale deed of the office location
• Copy of cancelled cheque leaf of the current account

Eligibility

Any type of business registration: Sole Proprietorship, Partnership, Private Limited and Charitable organization dealing with the export and import of goods should register for Importer Exporter Goods.

Any type of business registration: sole proprietorship, partnership, private limited companies, charitable organizations dealing with import and exports of goods can register for import-export code, irrespective of the size. However, IE code is not required for Import/export of goods for personal use, which is not connected with trade, manufacture or agriculture. There is no need for a business set up.

Exemption

• Persons undertaking import and export of goods for personal reasons and not connected to trade, agriculture and manufacture.
• Individuals who export/import goods to/from Nepal and Myanmar through Indo-Myanmar border areas and China (through Gunji, NamgayaShipkila and Nathula ports) with single consignment does not exceed Indian Rs.25,000.
• Exemption from obtaining IEC shall not be applicable for export of Special Chemicals, Organisms, Materials, Equipments and Technologies (SCOMET) as listed in Appendix - 3, Schedule 2 of ITC (HS) except in case of exports by category (ii) above.
• Ministries/Departments of Central and State governments
• Following permanent IEC numbers shall be used by non-commercial PSUs and categories of importers/exporters mentioned against them for import/export purposes.

Commercial Public Sector Undertaking (PSU) who have obtained PAN will, however, be required to obtain the Import Export Code number. The permanent IEC number as mentioned above shall be used by non-commercial PSUs.

VALIDITY OF IE CODE

Once registered the Import Export Code is permanent and becomes valid for lifetime. Hence, there is absolutely no need for renewal or update. It lasts until the business ceases to exist or the registration is surrendered. Also, the business does not have to do any monthly or annual filings like GST, PF, etc.

RCMC REGISTRATION

RCMC is Registration-cum-Membership Certificate issued by the Export Promotion Council body under the Govt of India. RCMC is required for businesses that deal with the export of restricted products, and those seeking concessions under Foreign Trade Policy like duty withdraw.

FAQs

1. What is IE Code?

IEC stands for Import Export code which is a 10 digit number issued by Director General of Foreign Trade, Department of Commerce, Government of India. It is a registration required for traders importing or exporting goods and services to or from India.

2. What is Merchandise export from India (MIES) scheme?

Under the MEIS Scheme, numerous rewards and incentives are provided to exporters. Such incentives are given to exporters at a prescribed rate which varies from product to product.

3. Who requires an Importer Exporter Code?

Any person/company dealing in international trade of export and import of goods and Services need to register for IE code.

4. Is there any tax levied based on IE Code?

IE Code is not a tax registration. However, certain customs duty may be levied depending on the product.

5. Can Export /Import be made without having an Importer Exporter Code?

No. IEC is a mandatory document for recognition by Govt. of India as Exporter / Importer of goods and services. However, if the value of goods is too low, the customs authorities may permit first export by imposing nominal charges which is highly unlikely to happen.

6. Can individuals obtain IE Code?

Anyone who is acting as sole proprietor of a business can obtain IE code Registration.

7. What are the documents required for IEC registration?

To obtain IE code registration, a copy of PAN Card, proof of address of business and constitution of the business [Partnership deed, Incorporation Certificate, etc.,] and a cancelled cheque of the current account is required.

8. How long does it take to obtain IE Code registration in India?

IEC Registration can be obtained from the DGFT in 7-10 working days after submission of all required documents and application form.

9. What is the penalty levied for not registering for IE code?

As trade is not possible without a valid IEC, the penalty levied may be the pay duty depending upon the quantum of the goods.

10. Can Export /Import of good and services be made without Importer Exporter Code?

No. IEC is a mandatory document for recognition by Govt. of India as exporter/importer. However, if the value of goods is very low, the concerned customs officer may permit the first export (only one time) by imposing penal charges

11. Does Custom department use IEC?

Yes, IEC number is reflected in all customs documents related to exports and imports.

12. How many IECs can a person get?

A single business owner can get only one License.

13. Can any changes be made in IEC?

Yes. In order to make changes, you need to raise a request with the DGFT and produce the relevant documents to make the modifications. Some government fee may be charged for the same.

14. How to cancel IEC?

IE code can be cancelled by initiating a formal request to the DGFT online. On receipt of such intimation, the authorities will cancel it electronically.