In today’s age of cut-throat competition and globalization, every business aspires to grow and expand beyond the limits of its domestic market. While diving into the overseas market may look promising, there are certain regulations and compliances that one needs to be aware of, starting with acquiring an Import Export Code (IEC) license.
The Importer-Exporter Code, popularly known as an IEC number, is a business identification number issued by the Director General of Foreign Trade (‘DGFT’), Ministry of Commerce and Industry, now a days, the PAN number of the applicant is treated as the IEC, however, application for registration is mandatory in nature, to get oneself enrolled on the DGFT portal. Unless specifically exempted, no person can make any export or import of goods & services without obtaining an IEC. An IEC registration certificate is thus mandatory for individuals and businesses looking to get involved in the import/export business. If an importer does not have both GST Registration and an IEC code, the goods sought to be imported may get stuck at the port and start incurring demurrage charges or can even be destroyed. IEC enables importers to clear customs and shipment and allows them to transfer money to foreign banks. Conversely, exporters require an IEC to send shipments and receive money from foreign banks. The code is hence essential for clearing customs, facilitating international transactions, and complying with various trade regulations.
Unlike most other government licenses, the IEC license remains valid for a lifetime and does not need to be renewed on a regular basis, nor does it require the filing of any annual returns. However, mandatory KYC is required every year, in case of change or else. Seedling specializes in navigating the complexities of IEC acquisition, offers comprehensive solutions to the challenges businesses face while obtaining the IEC license, and seamlessly guides them through the process. Our firm is committed to supporting local entities in establishing their global presence and in taking advantage of the opportunities presented by international trade. Our team of knowledgeable experts provides professional and comprehensive service to clients, ensuring a seamless compliance journey.
The list of scanned documents necessary for applying for IEC Registration is as follows:
To obtain an import-export license online, applicants must follow the following steps:
Acquiring an IEC number from the DGFT is quite straightforward and generally takes 3 working days from the date of submission of the application. No proof of export or import is required to obtain this code.
At Seedling, we offer a dedicated team of professionals equipped with comprehensive knowledge and experience in IEC registration. Our commitment extends beyond procedural assistance; we act as strategic partners, ensuring businesses not only navigate the complexities of registration effortlessly but also capitalize on the global opportunities the IEC unlocks. From document preparation to liaising with authorities, we are your trusted legal ally in the realm of international trade. With a track record of successful registrations, we provide end-to-end assistance, ensuring a smooth and timely process. Securing your IEC with Seedling is the first step towards unlocking a seamless global trade experience.
Acquiring the code is mandatory for import to India or export from India unless done for personal, non-commercial purposes. Exports and imports done by the Departments and Ministries of the Government of India and Notified Charitable Institutions are not required to get an IEC number. The code is also not necessary for service exports, except when the service provider is taking benefits under the Foreign Trade Policy.
Yes. Although the IEC has permanent validity, after the amendment of certain provisions under Chapters 1 and 2 of the Foreign Trade Policy on February 12, 2021, the code is required to be updated every year between April to June to avoid deactivation without the payment of any update fees. A deactivated IEC can be reactivated upon successful updating. Please note that reactivation is subject to the condition that the action does not prejudice any other steps taken to prevent the violation of any provisions of the Foreign Trade Policy.
Yes. Users need to raise a request with the DGFT and produce the requisite documents in order to make the changes. Government fees may be charged for the same. To cancel the code, inform the issuing authority of your decision. The code will be immediately cancelled after being electronically transmitted to the DGFT, who will then forward it to the Customs and Regional Authorities.
