Import Export Code Registration - an Overview.

An import export code is a unique 10-digit code that is required for every import/export business owner in India. The code is issued by the Director-General of Foreign Trade (DGFT), Ministry of Commerce, and needs no filing or renewal. IEC is required by importers to clear customs and shipment, and to transfer money to foreign banks. Exporters require their IEC to send shipments and receive money from foreign banks. In short, no importer/exporter can operate in India without getting the IEC.

Benefits of an IEC Registration:

• 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 the Merchandise Export from India Scheme (MEIS), the Service Export from India Scheme (SEIS), and others from customs and export promotion.
• No compliance requirements post 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.

How to Register for an IEC

To get your import export license online, you will need to do the following simple IEC registration steps.

• Step 1: All the required documents, including bank details and DSC, have to be submitted.
• Step 2:The online IEC application form will be filed with the Directorate General of Foreign Trade (DGFT).
• Step 3: Once the documents and application are verified by the authorities, the import export code will be granted as a soft copy to the entity.

Documents Required

The documents required for an IEC registration are relatively easy to get together. Only a few documents are required, which are listed below.

• PAN card of the company (not applicable in case of the proprietor)
• Applicant’s PAN and Aadhaar card (driving license/Aadhaar card/voter ID)
• Incorporation Certificate/Partnership Deed
• Address proof (electricity bill/rent agreement/sale deed of the office location)
• Copy of cancelled cheque leaf/banker certificate of the current account in the name of the company.

Eligibility for obtaining IEC Registration:

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, an IEC is not required for import/export of goods for personal use, which are not connected with trade, manufacture, or agriculture. There is no need for a business set up.

Exemption of IEC

• Persons undertaking import and export of goods for personal reasons and not connected to trade, agriculture and manufacture
• Through Indo-Myanmar border areas and China (via NamgayaShipkila, Gunji, and Nathula ports), the parties/individuals who import/export goods to/from Nepal and Myanmar with single consignment must not exceed the value of ₹25,000
• As listed in Appendix - 3, Schedule 2 of ITC, exemption from obtaining IEC shall not be applicable for export of materials, organisms, special chemicals, equipments & technologies (SCOMET)
• Ministries/departments of central and state governments.

Importer Exporter Code Glossary

AES: Automated Export System

Automated export system (AES) is the system used by U.S. exporters to electronically declare their international exports to the census bureau to help compile U.S. export and trade statistics.

FTR: Foreign Trade Regulations

Trade regulation is a field of law, often bracketed with antitrust, including government regulation of unfair methods of competition and unfair or deceptive business acts or practices.

POA: Power of Attorney

A power of attorney or letter of attorney is a written authorization to represent or act on another's behalf in private affairs, business, or some other legal matter. The person authorizing the other to act is the principal, grantor, or donor (of the power). The one authorized to act is the agent or, in some common law jurisdictions, the attorney-in-fact.

Takeaway:

IEC is mandatory before commencing the import and export business. Any individual or any business entity can obtain the license who wishes to expand his/her business on international level. DGFT keeps some categories exempted from obtaining the IEC code, which shall be kept in mind to avoid any kind of rejection in getting the IEC.