March 8, 2019

All about Import Export Code | IEC CODE

Importer Exporter Code (‘IEC code’) is a unique 10 digit code issued by the Director-General of Foreign Trade (‘DGFT’) of the Ministry of Commerce under the Government of India.
Import Export Code (IEC) is a unique identifier for all international trade transactions undertaken by India.

Import Export Code (IEC code) is a registration required for persons importing or exporting goods and services from India.
Import Export Code (IEC code) is issued only to Indian entities and individuals in order to enable them to undertake International Trade.

As per the Foreign Trade Policy,
Import Export Code (IEC code) Registration is mandatory for all import/ export transactions.

IEC is a one time code and remains valid throughout the life of the company.

1. Uniformity in IEC code pursuant to introduction of Goods and Services Tax (‘GST’)

Earlier, Import Export Code (IEC) was a 10-digit numerical code issued by DGFT and having a separate database.

Pursuant to the introduction of GST, the PAN of an entity would become and remain as the Import Export Code (IEC) of the entity upon registration.

All existing IEC holders holding numerical IEC numbers have been migrated to PAN-based IEC.

It may be noted that this is not an automated process. Any one who wants to do import export business will have to file import export code application to DGFT portal and the PAN number on PAN card would be recorded as the Import Export Code (IEC) of entity only upon registration with the DGFT.

2. Persons eligible to apply for IEC

Any legal person in India who wants to do import export business in India is eligible to apply for Import Export Code (IEC) .

3. What are the document required for applying for an Import Export Code (IEC)

Below are the list of required documents for Import Export Code (IEC)

PAN card and Passport size Photograph of Directors/ Partners
Bank Certificate/ Pre-printed Cancelled Cheque
Address Proof of the entity (any of the following documents)
- Sale deed
- Rent agreement
- Lease Deed
- Electricity bill
- Telephone Land line bill
- Mobile Postpaid bill
- MOU
- Partnership Deed

Where the address proof is not in the name of the applicant entity, a No Objection Certificate (NOC) from the owner of the premises of the entity, along with the address proof may be submitted.

4. Procedure for IEC online application

In order to apply for IEC, an application in Form ANF 2A has to be filed electronically in the DGFT portal.

Upon registration and filling in the required details, a copy of the IEC certificate would be available for download.

5. What is the application fees of
Import Export Code (IEC)

The filling fee of Import export code is Rs. 500. This fees to be deposit online while applying of Import Export Code (IEC).

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6. Requirement to furnish IEC

Import Export Code (IEC) is required to be furnished at several instances during the course of International Trade. Some of the instances include:

Clearance of import shipments by importer from customs authorities
Outward remittances by importer towards import payments
Clearance of export shipments by exporter at customs port
Inward remittances by exporter towards export realisations

7. IEC registration mandatory to claim export incentives

Export promotion has always been one of the top priorities for the Government of India and there have been several export promotion measures undertaken from time to time.

One of the mandatory requirements for claim of export incentives is IEC registration.

Various schemes where IEC is mandatory to be furnished include:

Concessional Taxation regime for Merchant Exporters
Merchandise Exports from India Scheme (‘MEIS’)
Service Exports from India Scheme (‘SEIS’)
Advance Authorization Scheme
Duty Free Import Authorization Scheme
Export Promotion Capital Goods (‘EPCG’) Scheme
Clearance of import shipments by importer from customs authorities
Outward remittances by importer towards import payments
Clearance of export shipments by exporter at customs port
Inward remittances by exporter towards export realisations

DISCLAIMER: The views expressed are strictly of the author and VJM & Associates LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

IEC details need to be confirmed every year to keep it remain active

In the recent Notification No. 28/2015-2020 dated 12th February 2021, DGFT make it mandatory for all IEC holders to ensure that the details in its IEC is updated electronically every year, during April – June Period. In case where there are no changes in IEC details same are also needs to be confirmed online.

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