Situations where IEC is required

• When an importer has to clear his shipments from the customs then it’s needed by the customs authorities.
• When an importer sends money abroad through banks then it’s needed by the bank.
• When an exporter has to send his shipments then it’s needed by the customs port.
• When an exporter receives money in foreign currency directly into his bank account then it’s required by the bank.

Documents required for IEC (Import Export Code) registration

For IEC Code Registration, the following documents are required:

• Individual’s, firm’s or company’s copy of PAN Card.
• Individual’s voter id or Aadhar card or passport copy.
• Individual’s or company’s or firm’s cancel cheque copies of current bank accounts.
• Copy of rent/lease agreement or electricity bill copy of the business premise.
• A self-addressed envelope for delivery of IEC certificate by registered post.

Validity of Import Export Code

The validity of an IEC certificate is for a lifetime. This means that once an IEC code is obtained, it is valid for all import or export transactions of the entity. There is no need to renew or update the IEC code after a certain period.

Nature of the Firm Obtaining an IEC Code

IEC certificate can be obtained by any individual, company, partnership firm, Limited Liability Partnership (LLP), or any other type of entity engaged in import or export activities. Whether you are an exporter or importer, having an IEC certificate is mandatory for all such transactions. Even if a business is not actively engaged in import or export activities, but it plans to do so in the future, it still needs to obtain an IEC beforehand.

Prerequisites for Applying IEC Code

To apply IEC code online, the following prerequisites are required:

• A valid Permanent Account Number (PAN) card issued by the Income Tax Department of India is mandatory
• The applicant must have a bank account in the name of the firm or individual, as IEC certificate is issued in the name of the applicant
• The business entity should be registered under the Registrar of Companies (ROC)
• The applicant needs to submit the relevant documents such as identity proof, address proof, and details of the business entity to the DGFT office.

Benefits of IEC Code

Online IEC registration enables entrepreneurs, notably those in e-commerce, to enter the worldwide market.

Companies can take use of government programs like the MEIS (Merchandise Export from India Scheme), SEIS (Service Export from India Scheme), and others from customs and export promotion.

There are no compliance requirements after import export code registration, making it reasonably easy to manage the firm.

IEC Code can be acquired online easily and quickly with only the most fundamental of paperwork.