Import Export Code (IEC) registration is mandatory for those looking to start a business in international trade in India. The IEC license serves as a unique 10-digit identification code that helps in monitoring import and export transactions.
In this blog post, we take a comprehensive look at the IEC registration process, specifically focusing on the important documents needed for new IEC application.
Overview of IEC License
Before diving into the documents list, let’s first understand what an Import Export Code is all about:
- IEC is a mandatory 10-digit code issued by the Government of India to monitor import and export trade
- It is regulated by the Foreign Trade (Development & Regulation) Act, 1992
- The Directorate General of Foreign Trade (DGFT) issues the IEC licenses
- Both importer and exporter businesses need to obtain IEC before undertaking global trade
- It is essentially a unique business identification number linked to an applicant’s details
- Helps government track trade statistics of importers and exporters
In short, no person or company can participate in international trade without first having an approved IEC license.
Now that we know what an IEC is, let’s look at the documentation needed for new IEC registration.
List of Documents for New IEC Application
There are some mandatory documents that must be submitted along with every new application for an Import Export Code license.
A. Business
For Company:
- Incorporation/Registration Certificate
- Memorandum of Association
- Certificate of Incorporation
- Director List with Din Numbers
- Board Resolution Copy
For Proprietorship & Partnership:
- Registration Certificate
- Deed Partnership (if applicable)
- Address Proof
B. Documents List
- PAN Card
- Aadhar Card
- Electricity/Water/Telephone Bill
- GST Registration (optional)
- Rent Agreement (if rented property)
- NOC from Owner (if property owned by parents)
- Bank Cancelled Cheque
- Bank Statement with bank stamp on it.
Step-by-Step Process for New IEC Registration
Now that you know the documents list, let’s quickly understand the step-by-step process to register for a new IEC code:
Step 1) Apply Online for IEC Registration
Visit the DGFT website and register yourself. First register your account, then log in and fill IEC application form with all key details.
Step 2) Upload Documents
Upload scanned copies of all the mandatory documents listed above along with application fees.
Step 3) Application Review by DGFT
IEC application will be reviewed by DGFT officers. Queries if any will be raised to you via email/sms.
Step 4) Issue of IEC Code
If application is approved, system generated IEC code will be sent to your registered email ID and mobile number.
Step 5) IEC Code Activation
You need to login and activate IEC code and then take prints for records. Registration process is now complete.
So in five easy steps you can apply for new IEC code and activate it. With the right documents in place, approval is faster.
Types of IEC Applications
There are different types of IEC applications – let’s understand them:
Fresh IEC Application
- For applying first time for import export code
- Needs all documents as listed above
Modification IEC Application
- For making changes to existing IEC details
- Like address update, activity update etc
Duplicate IEC Application
- For applying duplicate copy of existing IEC
- In case original IEC is lost or damaged
So based on your purpose, choose the relevant IEC application for processing.
Who Needs an IEC Code?
As mentioned earlier, IEC code is mandatory for all importers and exporters. Here is a list of businesses that need to compulsorily obtain an IEC license:
- Exporters – Merchant as well as manufacturer
- Importers
- Custom House Agents
- Freight Forwarders
- Bonded Warehouse Operators
- Couriers cleared by Customs for international operations
- Airlines and Shipping Lines
- Businesses looking to open foreign currency accounts
- Indian subsidiaries of foreign companies
- EOU and SEZ operations
- Trading companies
- Star Trading Houses recognized by DGFT
- Industrial Units undertaking import/export
- and more…
So if you are into any kind of global trade, securing an IEC code must be your top priority before starting operations.
Who Can Apply for IEC Code?
The following categories of applicants can submit registration requests for new IEC codes:
- Individuals
- Proprietorship firms
- Partnership companies
- Public limited companies
- Private limited companies
- Society
- Trust
- HUF
- LLP Limited Liability Partnerships
The above legal entities engaged or planning to engage in international trade related activities can and should apply for personalized IEC licenses.
Advantages of Obtaining an IEC Code
Here are some of the major benefits of having an Importer Exporter Code:
- Legal permission for import and export
- Smooth customs clearance without hassles
- Ability to claim export incentives
- Tax benefits for importers and exporters
- Access to loans from EXIM Bank
- Pay lower IGST on import of goods and services
- Faster resolution of trade related disputes
- Build credibility and establish proven trade record
- Can open current account with foreign currency transactions
- Adds to overall business reputation with approved govt. code
Thus, it pays to secure an IEC code at the earliest for your global trading business.
Penalty for Non-registration
- As per norms, not obtaining an IEC can attract a penalty between Rs.10,000 to Rs.1,00,000
- Such businesses may also face rejection of import/export consignments by Customs at ports
- Non-IEC firms also lose out on multiple trade benefits
- Their transactions may be subject to higher taxes and commercial assessments too
So instead of paying penalties later, it is best to be proactive and apply for IEC registration upfront.
Validity & Renewal of IEC Codes
- Import Export Codes once issued do not have an explicit expiry date
- They typically continue to remain in force unless cancelled by DGFT
- However, it is recommended to renew your IEC every 5 years
- Through renewal, you can update DGFT with latest business details
- It also reflects active adherence to import export regulations
- Overall, it is always suggested to keep your IEC code live and renewed for seamless trade operations.
Cancellation of IEC Codes
Existing IEC holders must take care not to attract cancellation of their unique codes due to these key reasons:
- Failure to furnish mandatory returns and statements
- Failure to produce regulatory documents during surprise checks
- Furnishing false information or misdeclaration in forms
- Non-updation of details leading to return of communications
- Engaging in unauthorized import/export activities
Thus, always follow DGFT guidelines and legal stipulations to keep your IEC active at all times.
Frequently Asked Questions
Here are some common FAQs on IEC code registration:
Q1. Can an IEC code be transferred or sold to another entity?
Ans: No. IEC holder cannot sell or transfer IEC code to any third party entity.
Q2. Can a business have two IEC codes?
Ans: No. Only one live IEC code is allowed per Indian business entity.
Q3. How long does IEC approval and issue process take?
Ans: Typically within 7-15 working days, IEC code is issued digitally post document verification.
Q4. What if lost original IEC certificate?
Ans: Apply online for duplicate IEC by paying fees of Rs. 200/-
I hope this detailed article gives you a complete understanding of the IEC registration process especially the documents required. Execute it well and seamlessly start your import export business!
If you have any other questions on IEC Registration then please comment below and I’ll be happy to address them!
