For every business, it is quite important to maintain business relations. It will benefit the business owners as they can expand their business even out from their workplace. When any business wants to do business beyond their country border they will require Import Export License (IEC). This license allows them to trade easily from their home country to a foreign country. Whether you are selling or buying goods and services doesn’t matter.
Importing and exporting goods and services is not a new thing for any business. It is an old traditional way that needs to be done under the supervision of the country’s officials. Thus to make the process more easy, secure and convenient, an Import Export License is mandatory if the business is engaged in international trade. With the help of IEC, business owners can take many benefits that can secure their business from any illegal work.
IEC is an important business identification number that is compulsory for export from India or Import to India. One can get the IEC from the official site of DGFT by completing the registration process. However, according to the latest updates from government officials, an IEC is not necessary for all traders who are enrolled under GST.
In addition, for IEC registration the government fee is Rs. 500/-, while the professional fees are also applied. After the successful registration process, businesses can get IEC within ten working days. The IEC holder can check the status of an IEC application by entering their PAN number along with the first three letters of the registered firm name. IEC comes with the lifetime validity of the entity and it needs to be renewed yearly. In case the user does not update the IEC within the prescribed time then it shall be deactivated.
All About the Import Export Code or License
The Import Export Code (IEC) is a unique identification number that grants permission for international trade to businesses. Although IEC only requires when any business wants to trade internationally. In today’s world, every small or big business wants more reach and growth. Meanwhile doing cross-border trade gives such businesses an amazing opportunity to show their potential. It not only boosts their international identity but also makes them one step ahead of their industry competitors.
With several benefits, the IEC is important in the world of trade and commerce. This makes smooth business operations for those who engage in cross-border transactions in our country. This blog will provide a complete guide that addresses frequently asked questions (FAQs) related to IEC. Also, it will include the importance of the IEC, its application process, and more.
As we know IEC is a must-have document for import or export, from or to India. IEC is obtained by business entities while issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce. By following the IEC registration process, businesses can get their Import Export Code which will ease their international trade.
Import Export License (IEC) in India
The Import Export Code (IEC) is not just a legal formality but also an important step for businesses to spread across borders. In India, the Import Export Code (IEC) gives strength to businesses that are ready to do international trade. It comes with so many benefits while enhancing the customer experience. However, to acquire the IEC code businesses need to follow the application process. Notably, along with businesses it is also important for individuals who want to do international trade.
The IEC code provides support and international opportunities for businesses as well as individuals so that they can show the potential of their businesses. It simply works as a passport for businesses which allows the businesses to travel with government registration. IEC code is also a unique identifier that enables easy transactions and builds credibility in the international business world.
On the other hand, if any business that engages in international trade doesn’t have an IEC code then it can raise problems for them. As it can affect their international trade operations and also create a negative impact on the international market. The unavailability of the IEC code also restricts businesses, making them less powerful as compared to those businesses that own the IEC code.
However, the IEC code is not a complex process as it is possible online. Firstly, you have to visit the official site of the Directorate General of Foreign Trade (DGFT), and then fill in all the required information. For the online IEC registration process, you must have a PAN card, any ID for address ID, business proof, a canceled cheque from the bank, and more.
Processes in Import Export Code (IEC)
According to the official site of DGFT, there are multiple processes in IEC, such as:
Apply for IEC
For applying for IEC the mandatory documents are PAN, bank account, and valid address in the name of the firm. Meanwhile, the address needs to be physically verified by the DGFT on issuance of the IEC.
Link user profile to IEC
When you already have IEC then you need to link your IEC with your user profile. For this process, your digital signature token must be ready before linking.
Viewing IEC profile
The Importer and Exporter Profile represents crucial details concerning the importing or exporting firms registered with the Directorate General of Foreign Trade (DGFT). The IEC is the primary part of the Profile. Additionally, to the IEC, details like RCMC, Industrial Registration details, Status Holder details, Past Export Performance, and more are also represented under this profile.
Print IEC
The process for IEC includes printing your IEC Certificate which includes the firm name, address, IEC number, date of issue, and branch details. However, the new certificates may contain a unique QR code that can be used to verify the certificate online.
Update or Modify IEC
In case you need to modify or update an IEC, then you need to click and modify the IEC details. Then submit the request for auto-approved modification.
Surrender IEC
You can also request for online surrender of IEC. Notably, the IEC will be suspended for any transactions. It will need to be revoked by filing a revocation of suspension.
Request removal from DEL
The user can apply for request removal of IEC from the Denied Entity List (DEL) and start applying for DGFT benefits and schemes again.
Request revoke suspension
If the user’s IEC is suspended or surrendered then they can use this option to raise a request to revoke the suspension from IEC.
Request revoke cancellation
If the user’s IEC is canceled, then using this option can help them in raising a request to revoke the suspension from IEC.
Manage users linked to IEC
Over one user can be added to a given IEC. The users may be added as primary or secondary users. The user may further add permissions for a given user to access each of the respective schemes under DGFT.
Request for merger or demerger
When the IEC merged or de-merged then the same can be recorded in the system and multiple entities linked together by following the process.
IEC help and FAQs
In case you need any help or have any queries then you can refer to the Help and FAQs on the IEC module.
IEC Service Registration with Legal251
By visiting our official site, you can also complete your registration for the Import Export License (IEC) service. The process simply follows filing your basic details such as name, email ID, and contact number. Our team will contact you in no time and solve the query related to your registered service. By clicking on the below-mentioned link, you can directly do the registration from our site. After the successful registration process, we will issue an IEC License.
https://legal251.com/import-export-license
Additionally, when you become our valuable customer we will provide you several benefits. Such as we make your business more capable of reaching the global market. As we follow the online registration process you can easily manage it from anywhere. In case you don’t have all the necessary documents required for IEC registration then our expert will help you.
IEC registration with Legal251 further allows your business to compete better than other similar industry businesses. Notably, IEC registration lowers the risk of illegal transportation, avails export incentives, doesn’t need annual maintenance, and has lifetime validity.
Update in IEC Registration
Besides the IEC registration process, you would also be required to update it according to the recent changes in government guidelines. Thus if you need to update your IEC registration you can visit its official site and click on the ‘Registration’ tab. Select ‘Import/Export’ from the main menu and click on ‘Registration Details’ from the sub-menu. On this page, you will find the ‘Update IEC Registration Form’ link under ‘Import Export Code (IEC)’. Clicking on this page, a form will open, fill in all the details, and then click on the ‘Submit’ button.
After the successful submission of all details, your IEC registration will be updated automatically. Additionally, to update your IEC registration you must submit your business name, address, contact number, email address, and website URL (if applicable), business type (import or export).
Benefits of IEC Registration
There are some advantages of IEC such as it provides global credibility to businesses as well as individuals. It signals to international partners that you are a legitimate player in the world of trade. It will also ease the processing of customs clearance. It ensures the goods move seamlessly across borders.
-It will reduce the time spent on customs documentation
-Enhance the accuracy of customs declarations
-Boost safety when you are engaged in the international trades
-You can easily update the IEC registration form and fill in the new information
-Great opportunity to take your business out of the country
FAQs About the Import Export Code in India
Certainly! There are some frequently asked questions or FAQs related to the Import Export Code in India.
What is the Import Export Code?
-Import Export Code is a 10-digit code issued by DGFT, Ministry of Commerce and Industry, Government of India. IEC is required for any Indian business entity or individuals who trade across borders.
Who needs to acquire an Import Export Code?
-Whether you are an individual entrepreneur, own a small or big business, or are part of a large corporation, if you engage in international trade activity then obtaining IEC is compulsory. It is compulsory for any individuals or business entity engaged in importing or exporting goods and services from India.
How to apply for an Import Export Code?
-For the registration process using the official site of DGFT, the user can choose IEC Profile Management under the Services tab. Any individual or business entity can apply for an IEC online through the official site of DGFT. An online application along with all required documents and fees must be submitted.
What are the important documents for an IEC application?
-For the IEC application, mandatory documents are a PAN card, address proof, bank certificate, and a passport-sized photo of the applicant. Moreover, some additional documents may be required based on the type of entity.
Is it important to renew the IEC?
-One of the most common misconceptions is whether an IEC requires renewal. So here is the answer No, it is not important to renew the IEC. Once the IEC is obtained it is valid for a lifetime and doesn’t require to be renewed.
Can an individual apply for the IEC?
– Yes, the IEC can be applied by an individual besides businesses. Also, an individual can actively participate in cross-border trades. However, the process and documentation work may vary according to the type of applicant.
What would be the processing time for IEC issuance?
-The processing time for IEC issuance is quite a fast process but can vary. After the successful submission of the application, documents, and verification process, the IEC is usually issued promptly.
Is IEC compulsory for the export of services?
-Yes, IEC is compulsory for the export of services as well as the export of goods from India.
Can IEC be used for more than one branch of a company?
-Of course, a single IEC can be used for all branches or business units of a company. It is optional to get a separate IEC for each branch.
What will happen if I lose my IEC?
-In case, you lose your IEC then you can request a duplicate certificate from the issuing authority by providing the necessary details and paying the application fee.
What is the role of export promotion councils in international trade?
-The role of Export promotion councils is set by the Ministry of Commerce to assist and handhold manufacture exporters and traders for particular commodities or multiple commodities.
In India, how many IEC Codes are allowed?
-In our country, there are a maximum of 10 IEC codes allowed for registration with the Export Promotion Council of India. These codes show specific types of exports that our country is looking to promote.
What is the fee for an Import Export License (IEC)?
-According to Indian Trade Portal, the application for IEC is Rs. 500/-.
What are the technical requirements for filing an Import Export License (IEC)?
-There are some technical requirements for filing an IEC, which include a valid digital signature token (Class II or III), valid PAN, mobile number, email ID, address details of the branch office, bank account in the name of IEC holder, and a valid Aadhar card matching the details with PAN card.
What will happen if the IEC is not updated annually?
-If IEC is not updated within the prescribed duration, then it will be deactivated. But it can be activated after the successful update. It would however be without prejudice to any other action taken for violation of any other provisions of the FTP.
From where I can get the information about my successful payment process?
-When you make the payment successfully, you will get the Acknowledgment of ‘Successful; Submission’ of application for IEC with File No. However, your application status can be tracked using ‘Track Status’ and the Receipt could again be printed.
Is an Import Export License (IEC) required by Service Exporters?
-IEC shall not be necessary, except when the service provider is taking the benefits under the Foreign Trade Policy.
Important Points related to IEC
IEC is a unique identification number assigned to Indian importers and exporters. This is compulsory to maintain IEC registration with the Central Board of Excise and Customs (CBEC). As it will allow trade in goods and services between other countries.
- Import Export Code is a compulsory unique 10-digit identification number for import and export from India.
- The Import Export Code (IEC) is required for clearing customs, sending shipments, and sending or receiving money in foreign currency.
- The IEC is not compulsory when the goods or products are imported or exported by the government of India or charitable institutions.
- Some important documents are required for IEC Code registration, as we have already discussed in this blog.
- IEC is required by anyone who wants to start their import or export business and commercial purposes in India.
- Importers can not import goods without the IEC while exporters can not benefit from the DGFT for the export scheme.
- As specified in the first schedule of the Customs Tariff Act, of 1975, India levies basic customs duty on imported goods.
- The customs authorities need IEC when an importer has to clear the shipments through customs.
- In the case of partnership firms, LLP and Company separate IEC will be required for each of such entities. Such as PAN is allotted to them individually by the regulatory authority.
- According to Section 46 of the Customs Act (1962), after getting import licenses, importers are required to provide import declaration in the prescribed format along with the Bill of Entry and PAN-based Business Identification Number (BIN).
End Notes!
To conclude, obtaining an Import Export Code is a pivotal step for businesses aspiring to make their mark in the international marketplace. In this blog, you gathered the knowledge needed to navigate the IEC application process seamlessly. In this blog we have discussed the importance, application process, and advantages of having IEC along with some important FAQs.
Businesses and individuals can embark on their international trade journey with confidence and compliance. With IEC, one can stay informed and competitive while the doors of global opportunities also open.
The Import Export Code is a fundamental requirement for anyone who is involved in cross-border trade activity in India. This blog aimed to demystify the complexities related to IEC by addressing the most common FAQs. While most of the queries are already discussed in this blog. Hope! this blog helped you in finding the answers related to Import Export License (IEC).
Last but not least, if you want to get your IEC for your import-export business, then you can contact us and get expert support.
