1) What is Import Export Code (IEC)?
An Importer -Exporter Code (IEC) is a key business identification number which mandatory for export from India or Import to India. No export or import shall be made by any person without obtaining an IEC unless specifically exempted. For services exports however, IEC shall be not be necessary except when the service provider is taking benefits under the Foreign Trade Policy.
The nature of the firm obtaining an IEC may be any of the follows- Proprietorship, Partnership, LLP, Limited Company, Trust, HUF, Society.

2) Who issues Import Export Code (IEC)?
IEC is issued in electronic form (e-IEC) by Directorate General of Foreign Trade (DGFT) which is under Ministry of Commerce, Government of India.
The Directorate General of Foreign Trade (DGFT) is the agency of the Ministry of Commerce and Industry of the Government of India responsible for administering laws regarding foreign trade.

3) What are the Pre-Requisites for Applying for Import Export Code (IEC)?
Import Export Code (IEC) may be applied on behalf of a firm which may be a Proprietorship, Partnership, LLP, Limited Company, Trust, HUF, Society. Firm must have a PAN, bank account in the name of the firm and a valid address before applying. Address may be physically verified by the DGFT on issuance of the IEC. Please keep your PAN, bank details and firm details ready before applying.


4) What is the validity of Import Export Code (IEC)?
An Import Export Code (IEC) allotted to an applicant shall have permanent validity but it is mandatory to update the Import Export Code (IEC) annually so that the Import Export Code (IEC) is not deactivated. If the Import Export Code (IEC) is updated between April-June period each year, no fee shall be charged for updation of Import Export Code (IEC).

5) What happens if the Import Export Code (IEC) is not annually updated?
In case of non-updation of IEC within the prescribed time, it will be de-activated. An IEC so de-activated may be activated, on its successful updation. This would however be without prejudice to any other action taken for violation of any other provisions of the FTP.

6) When is Import Export Code (IEC) 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.

7) Which Businesses require Import Export Code (IEC)?
Proprietorship Firm
An individual carrying out the process of imports and exports would require to secure the IEC certification.

Partnership Firm
A firm of partners would also require taking this certification, if they are exporting and importing products.

Limited Liability Partnership
Any partnership formed under the limited liability partnership act, 2008 (LLP Act, 2008) would require to take this certification in the business of trading outside India.

Private Limited Company
Any company which is established under the companies act, 2013 or previous company law would also require this certification, if the company is engaged in sending products outside India.

Trust
Any form of entity engaged in carrying out the activities for the beneficiary also has to comply with the requirement of securing the Import Export Code.

Hindu Undivided Family
Any Hindu Undivided Family where the individuals comprise of a Karta and Sole members would also require this form of certification for carrying out imports and exports.

Society
Any society which is formed under the Co-operative society or the societies registration act would require this license to carry out imports to India and exports outside India.

8) When is Import Export Code (IEC) Exempted?
An Import Export Code (IEC) is required for import of any type of goods by a business. However, the following category of persons are exempted from obtaining an IEC:
  • Persons undertaking import and export of goods for personal purposes and not 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 Rs 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
  • Notified Charitable institutions need not require getting Import Export Code.

GST under Import Export Code (IEC)
Consequent upon introduction of GST, IEC being issued is the same as the PAN of the firm. However, the IEC will still be separately issued by DGFT based on an application.

9) What are the Documents Required for Import Export Code (IEC) Application?
The following are the documents required for making an IEC application in India.
Passport Photograph of the Individual/ Proprietor/ Managing Partner/ Designated Partner/ Director/ Secretary or Chief Executive/ Karta
  • Copy of PAN card of the applicant/ applicant entity
  • Copy of Passport (first & last page)/Voter’s I-Card/ Driving Licence/UID (Aadhar card) (any one of these).
  • Sale deed in case business premise is self-owned; or Rental/Lease Agreement, in case office is rented/ leased; or latest electricity /telephone bill.
  • Bank Certificate as per ANF 2A(I)/ Cancelled Cheque bearing pre-printed name of applicant and A/C No.
  • Copy of Partnership Deed in case of Partnership firm
  • Certificate of incorporation as issued by the Registrar of Companies (RoC) in Case of LLP or Private Limited Company or Section 8 Company
  • Registration Certificate of the Society / Copy of the Trust Deed in case of Society or Trust

Bank Proof
It is has been clarified vide Trade Notice No. 39/2018-19 dated 12th December 2018 that a cheque without a pre-printed name of the account holder will not be acceptable. Further, the pre-printed cheque can be of savings account or current account. It is to be noted that the above-referred documents need to be uploaded online in digital format-GIF, JPEG and the document size should not exceed 5MB.




10) What are the Steps Involved in Import Export Code (IEC) Registration?
Step 1 : Application Preparation
In order to get code an application must be made in the Aayaat Niryaat Form 2A format to the DGFT in that region where the registered office of the company is established. Government has also arranged online filing facility for obtaining IEC ONLINE.

Step 2: Application Processing
Details of the business and its proprietors, directors or partners, bank account details and a bank certificate are the basic requirements of ANF 2A. All the required documents for IEC need to be submitted with ANF 2A. Digital signature is required on the ANF2A form.

Step 3 : Import Export Code (IEC) fee payment
Once the application if complete, it should be filed with DGFT and an application fee need to be paid to the government. IEC department may send back your application for correction / change. You need to reply back to the DGFT in 15 days.

Step 4 : Import Export Code (IEC) Issuance
Once the application is completely verified by the department, the Directorate General of Foreign Trade will allot an IE Code for your business. Notification regarding allotment of IEC will be sent to an applicant via SMS and e-mail along with a hyperlink through which the e-IEC can be downloaded and printed.
Though the import-export code is auto-generated, the Regional Authority would conduct post-verification of the online IEC as per the guidelines. In case there is any wrong/incomplete information being provided, the applicant would be liable for penal/criminal action and in such case, IEC would be either suspended or cancelled.

11) What are the Benefits of Import Export Code (IEC)?
Growth of Business
IEC assists you in taking your services or product to the international market and expanding your businesses.

Benefits from Government
The Companies could avail several benefits of their imports/ exports from the DGFT, Export Promotion Council, Customs, etc., on the basis of their IEC registration.


Zero Compliance
IE Code does not require filing of any return. Once, an IE Code is issued there are no further procedures required to maintain validity of the IE Code.

Hassle-free Processing
It is fairly easy to obtain IEC code from the DGFT within a period of 10 to 15 days after submitting the application. There isn’t any need to provide proof of any export or import for getting IEC code.

Validity for Lifetime
IEC code is effective for the lifetime of an entity and requires no renewal. After it is obtained, it could be used by an entity against all export and import transactions.

Export Subsidies
On the basis of IEC, companies or firms can benefits and subsidies their exports/ imports from DGFT, Customs and export promotion council.

Individuals can have Import Export Code (IEC)
Even individuals who are proprietors of a business can obtain IE Code in their name. It is not necessary to incorporate a business entity for obtaining IE Code.

Are you ready to take a step toward being an exporter/ importer? If the answer is yes, then why wait? If it seems confusing or if you feel you are in limbo, Rest assured!! 
Advo e-Works will help you with your Import Export Code (IEC). Reach us at (+91) 949 106 2020 or email info@advoeworks.com.