Did you know before doing business on a global scale, you must adhere to several procedures and laws and obtain various registrations and licenses? When considering importing or exporting from India, an IEC means Import Export Code license in India is one of the requirements. It is also referred to as the Importer-Exporter Code.

What is IEC?

IEC is an obligatory unique 10-digit code for Indian import and export. It is issued by the Director General of Foreign Trade (DGFT) and is valid for the duration of the entity’s existence. An identifier is a code that represents the IEC. In this case, the IEC would be the same as the firm’s PAN.

Why IEC Code?

In this day of business, everyone wants to expand their business beyond the confines of the domestic market. Doing business globally has become much easier since the advent of the internet and technology. Anyone looking to start an import/export business in the country must have an Import Export Code. The Director General of Foreign Trade issues it. Generally, importer merchants cannot import goods without the Import Export Code, and exporter merchants cannot benefit from the DGFT for the export scheme, etc., without the IEC.

According to the most recent government circular, IEC in India is not required for all GST-registered traders. In all such cases, the trader’s PAN shall be interpreted as a new IEC code for import and export. Import Export Code (IEC) is not required if the goods exported or imported are for personal use only and are not used for commercial purposes. Government of India Departments and Ministries, as well as Notified Charitable Institutions, are exempt from obtaining an Import Export Code.

What is the need for the IEC Code?

• The customs authorities require it when an importer has to clear his shipments through customs.
• When an importer sends money abroad via a bank, the bank requires it.
• When an exporter needs to send his shipments, the customs port requires it.
• The bank requires it when an exporter receives money in foreign currency directly into his bank account.

Eligibility to acquire IEC Code:

The provisions of the Foreign Trade (Regulation) Rules, 1993 govern the entire operation of import and export in India. As a result, IEC is also governed by the same legislation. When importing or exporting services or technology, IEC is required only in limited circumstances, such as when importing or exporting specified services or specified technologies, i.e. services or technologies in which international trade is restricted by the Government of India due to national security concerns, such as dealing in nuclear weapons, automatic weapons, and so on. Under the following conditions, IEC is not required:

• Import/export of goods for personal use that is unrelated to trade, manufacturing, or agriculture.
• Import/export by government ministries and departments, as well as certain charitable organizations that have been notified.

Procedure to obtain IEC Code:

• The applicant’s Registered/Head Office will file the IEC application with the nearest Regional Authority of the Directorate General of Foreign Trade (DGFT), which is the Registered Office in the case of a company and the Head Office in the case of others.
• The applicant must submit the necessary forms and complete the ‘Aayaat Niryaat Form – ANF2A.
• Only one IEC will be issued for each PAN number. If a proprietor has more than one IEC, they may be surrendered to the Regional Office for cancellation.
• It should be noted that according to the rules, only one IEC can be issued for a single PAN number. 
• If a proprietor is assigned more than one IEC, they may be surrendered to the Regional Office for cancellation.

Documents required for IEC Code registration:

1. Account information

2. PAN number

3. Bankers Guarantee

4. duplicate passport-size photographs

5. A self-addressed envelope for registered mail delivery of the IEC certificate

Procedure for online application for IEC Code

• The ANF2A application form for the grant of an Import-Export code online can be downloaded from the website in PDF or Word format. If you apply, you must have Appendix 18B attested by the bank authorities on his letterhead, as well as two passport-size photos. An IEC number assigned to an applicant must be valid for all of its branches/divisions/units/factories, as specified in the format.

• The form has a small IEC application fee of Rs. 250/-. You can pay by DD (Demand Draft) or TR6 challan whether you file online or offline. Alternatively, you can pay via EFT (Electronic Fund Transfer) by DGFT’s Nominated Bank. Along with the IEC Code application, the applicant must submit the TR6 Challan.

The Import Export Code application can be completed online at the DGFT website. The IEC application must be signed and completed correctly. If an application is found to be incomplete, the authority is very likely to reject it. Manually submitted applications should be in Word format as a soft copy. If you are an exporter or importer in India, you must keep your IEC registration up to date. Failure to do so may result in a variety of penalties and restrictions, such as the inability to export certain goods and the refusal of customs clearance for imports.