What is an IEC?

IEC is a 10-digit unique code that is essential for export and import dealings in India. All businesses looking to venture into foreign territories must obtain an Import Export Code with IEC registration. Having an IEC registration also makes your business eligible for availing of advantages of favourable Foreign Trade Policy. The Director-General of Foreign Trade (DGFT) under the Ministry of Commerce’s authority issues the IEC code. It takes about 7-15 days for the IEC registration process, after which it doesn’t need to be renewed again, i.e., it has a lifetime validity once it is issued.

Who needs an IEC?

An IEC will be required in the following situations:

• Businesses exporting to other countries need an IEC registration while shipping the goods.

• IEC is needed for clearance of goods from customs authorities after importation in India.

• The registration for IEC is also mandatory while making or receiving payments for import or export transactions.

• IEC registration is necessary if you want to take benefit from any foreign trade policy declared by the government of India.

• You would still need an IEC to sell or purchase goods from any foreign countries whether you have a commercial establishment or not.

• Any cash transactions through the banks of another country for import or export purposes need to be backed by an IEC.

Benefits of import & export code (IEC)

Many business owners are unaware of the benefits of IEC in India. Here are some of them:

• The government of India encourages foreign trade and has declared various policies and schemes to ensure the security of business transactions through the Foreign Trade Policy. To benefit from any of these policies or schemes, an IEC registration is required.

• One can claim several tax benefits while making international transactions if the business is registered with IEC.

• If you want to expand your business and reach buyers across countries, and IEC is necessary. Doing so can help you to increase your revenue and find more buyers online or offline.

• Businesses with an IEC registration do not need to file returns or record the profits or legitimise their business transactions through any legal procedures.

• Anyone can get an IEC without the requirement to display a proof of imports or exports in advance.

• IEC does not need renewal every year. Once approved, it is valid for a lifetime.

Document required for IEC Registration

While registering for IEC with DGFT, you will need to submit the following documents:

• Copy of pan card of proprietors or directors

• Copy of identification proof of proprietors or directors (such as Aadhar Card)

• Passport size photos of proprietors or directors

• Proof of address

• Proof of ownership or possession of registered business premises