What is an Import Export Code?
iec-registration
In these times of cut-throat competition, every business wants to grow and expand its market. Though making your business global is not an easy task, before going global, a company has to follow the IEC code registration process for obtaining an Import Export Code license for starting an import-export business in India. A ten-digit import export code is issued by the Director General of Foreign Trade (DGFT). Importers merchant cannot import goods without the IEC code registration, and similarly, the exporter merchant cannot avail benefits from the Director General of Foreign Trade for the export scheme.
When is IEC Code Registration required?
- IEC code registration is essential for a business that is involved in the import or export of goods and services. When an importer has to pick shipments from the customs import export code is necessary as, without it, the shipment cannot get cleared.
- Bank asks importer for IEC code registration in the process to transfer money to other countries.
- The exporter needs IEC code Registration at the customs port to clear shipments.
- Import-export code registration is required when an exporter receives payment from abroad directly into the bank account.
- Authorities of other countries verify a trader by their IEC code registration.
Advantages of IEC Code Registration
Necessary Documents Required for IEC Code Registration
- PAN Card of the Company or Individual.
- Bank statement of the current account of the company or the Individual.
- A copy of the canceled cheque of the current account of the company or individual.
- A certified copy of Driving License.
- A certified copy of Aadhar card or voter ID card.
- Certificate of Incorporation of the company or Partnership Deed.
- Address proof of the company’s registered office.
IEC Code Registration Process
Businesses that are involved in the import-export business require IEC code Registration from the Directorate General of Foreign Trade. IEC code registration is a one-time process that will be valid for the lifetime of the company. It is an online process and can be done on the Directorate General of Foreign Trade’s official website.
Step by Step process for IEC code Registration:
- Visit Directorate General of Foreign Trade (DGFT) Website
Visit official website of DGFT, where the applicant will get quick links at the left-hand side of the page. Now the applicant needs to click on the option ‘Apply for new IEC/Modify existing IEC.
- Enter PAN card Number
After clicking on apply for the new IEC, the next page will ask for applicants’ PAN card number. For entering PAN, details applicant has to click on the search option. The applicant will be directed to a page where PAN car details such as:
- Name as mentioned on the PAN card.
- Date of birth of the applicant or the date of incorporation of the company.
- Captcha code
After mentioning the asked details, the applicant has to click on ‘submit.’
- Status of PAN Card Verification
If the details provided of the PAN card by the applicant are valid, a message will appear on the screen confirming the PAN Card verification. After receiving the message, click on ‘proceed.’
- Login for Fresh IEC Application
After PAN verification, in the next step applicant has to submit an e-mail ID and Mobile Number. On the right-hand side of the screen, the applicant will be asked t0 fill a captcha code and then click on ‘generate OTP.’
- Enter the OTP
The applicant will receive an OTP on e-mail and on the mobile number. The applicant has to enter the OTP and then click on ‘submit.’ If the applicant did not receive OTP, then click on regenerate OTP.
- E-Commerce Number Generation
After submitting the OTP, a twenty digit number will appear on the screen. On the right-hand side of the screen applicant has to provide the following details:
- Name of the Entity
- The registered address of the Entity.
- State, District, PIN code where the Entity is located.
- The E-mail address and mobile number as provided earlier.
- Name as mention on the PAN card.
- Date of Incorporation of the Company.
- Nature of the entity, if the entity is an LLP, proprietorship, public or private limited company, etc.
- Activities in which the entity is involved, such as Manufacturer Exporter, Merchant Exporter, Service Provider, etc.
- Bank Account Number
- Account holder Name
- Applicant Details
After filling the above-mentioned details, the applicant has to click on ‘Update and Save.’
- Update Branch Details
The next page will ask the applicant to provide branch details of the entity. The applicant has to fill the following information:
- Branch SI. Number
- Address of the Branch
- 6 Digits PIN
After details are filled, click on ‘Add,’ and the applicant will be directed to the next page.
- Update the Details of Directors/Partners/Managing Trustee/Proprietor
After branch details are submitted, the next page will ask the applicant to provide all the features of partners, proprietors, partners, etc. Details are as follows:
After mentioning the above-mentioned details, click on ‘Add.’
- Upload Documents
The next step is uploading of documents. The documents must be in PDF format or in the form of GIFs. The documents that must be uploaded are canceled cheque or bank certificate, Address proof.
For Proprietorship, the acceptable documents are:
- Fee Payment and Verification
After all the necessary documents are uploaded, the next step is to submit the prescribed fee for IEC code registration. The applicant has to verify that the confirmation of the fee.
- Final Submission of IEC Code Registration Application
After the payment of the fee, the applicant has to submit the final application for IEC registration. The applicant needs to check the application thoroughly and then click on ‘Print Application.’
The final step is to submit the application by clicking on ‘submit.’ The application can be submitted by using a digital signature. For checking the status of the application, submit the PAN card details.
Conclusion
IEC code registration is important for a business that is involved in the import or export of goods and services. Importers merchant cannot import goods without the IEC code registration, and similarly, the exporter merchant cannot avail benefits from Director General of Foreign Trade for the export scheme.
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