IEC Code - An Overview

Importer Exporter Code (IEC Code) Registration with TRUSTRA ADVISORY

International trade opens up a world of opportunities for businesses in India. Whether you aspire to import goods, export products, or expand your operations globally, obtaining an Importer Exporter Code (IEC) is your essential gateway to accessing international markets.

Issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce, the IEC is mandatory for businesses involved in import and export activities. This unique ten-digit code is crucial for importers to clear customs and facilitate payments to foreign banks, ensuring seamless international transactions. Similarly, exporters rely on the IEC to streamline shipments and receive payments from overseas clients.

Understanding the importance and process of obtaining an IEC is the first step. At TRUSTRA ADVISORY, we are dedicated to simplifying this process for you. Our comprehensive IEC registration services ensure you obtain this vital code efficiently, positioning your business to thrive in the global trade landscape.

Ready to Expand Globally? Obtain Your IEC Number Today through TRUSTRA ADVISORY!

What is an IEC Code (Import Export Code)?

The full form of IEC Code is "Importer Exporter Code". It is a unique ten-digit number issued by the Directorate General of Foreign Trade (DGFT) that is mandatory for any business entity wishing to import into or export from India. Popularly known as the IEC number, it is a prerequisite for engaging in cross-border trade.

Before initiating the import of goods into India, an importer must possess both GST registration and an IEC code. Both are essential for customs clearance. Without these, goods can be held at the port, leading to costly demurrage charges or even potential destruction. Similarly, exporters require the IEC to legally dispatch goods and receive international payments. Engaging in the IEC application process via the DGFT portal requires adherence to specific rules and regulations.

The Significance of Your Import Export Code

Securing an IEC is a critical step for businesses aiming to leverage the vast potential of the international market. It not only legitimizes your global trade activities but also supports your business's growth and development on a broader scale. The advantages of obtaining an IEC are numerous:

• Unlocking International Markets: The IEC is a fundamental requirement for engaging in import-export activities, enabling your products and services to reach customers worldwide. It smooths the entry of Indian companies into the global market, paving the way for significant growth and expansion.
• Streamlined Online Registration: The entire process for obtaining an IEC is designed to be online and user-friendly, involving minimal documentation.
• Reduced Document Requirements: Compared to many other business registrations, the IEC application process requires a relatively small set of documents.
• Lifetime Validity: One of the key benefits of the IEC is its permanent nature. Once obtained, it is valid for the lifetime of the business, eliminating the need for periodic updates, filings, or renewals, provided the registration is not revoked or surrendered.
• Curbing Illegal Trade: The rigorous verification process involved in obtaining an IEC, which requires providing authentic business information, helps in preventing the illegal transportation of goods.
• Accessing Government Benefits: IEC holders can avail various benefits and incentives offered by the government to promote exports, such as subsidies from Customs, Export Promotion Councils, and other authorities. Exporters can also make tax-free exports by filing a Letter of Undertaking (LUT) under GST, or claim refunds of paid taxes on exports.
• Minimal Compliance Burden: Unlike many other tax registrations, the IEC does not mandate specific compliance requirements such as annual filings or periodic return submissions.

The lifetime validity and lack of recurring compliance obligations make obtaining an IEC a highly recommended step for all businesses considering import or export activities, ideally soon after incorporation.

Business Structures Eligible for an IEC

An Import Export License/Registration can be obtained by various types of business entities, including:

• Proprietorship Firm
• Partnership Firm
• Limited Liability Partnership (LLP)
• Limited Company (Private or Public)
• Trust
• Hindu Undivided Family (HUF)
• Society

Pre-requisites for Applying for Your Import Export License

Before initiating your IEC registration application, ensure you meet the following pre-requisites:

• DGFT Portal Access: Valid login credentials for the DGFT Portal are required after initial registration on the portal.
• Valid PAN: The applying firm must have an active Permanent Account Number (PAN). Details such as the name as per PAN and date of birth or incorporation will be verified against the Income Tax Department database.
• Bank Account: The firm must possess an active bank account in the name of the firm.
• Valid Address: A valid business address is required. These details are subject to validation.

Essential Documents for IEC Code Registration

The following scanned documents are typically required for your IEC application:

• Proof of Establishment/Incorporation/Registration: Required for Partnership Firms, Registered Societies, Trusts, HUFs, and Other entities (excluding Proprietorships).
• Proof of Address: Any one of the following documents is acceptable:
  • Sale Deed
  • Rent Agreement
  • Lease Deed
  • Electricity Bill
  • Telephone Landline Bill
  • Mobile Post-paid Bill
  • Memorandum of Understanding (MoU)
  • Partnership Deed
  • Other acceptable documents (specifically for Proprietorships): Aadhaar Card, Passport, Voter ID.
  • Note: If the address proof is not in the name of the applicant firm, a No Objection Certificate (NOC) from the premises owner in favour of the firm, along with the owner's address proof, must be submitted as a single PDF document.
• Proof of Firm's Bank Account:
  • Canceled Cheque (bearing the firm's name)
  • Bank Certificate
• Digital Signature Certificate (DSC) or Aadhaar: An active DSC or the Aadhaar number of a firm member is required for digital submission.
• Active Bank Account: Details of the firm's active bank account are needed for entering in the application and facilitating the online payment of the application fee.

Once you have gathered these documents, you can proceed with the IEC code registration process through the DGFT portal.

Documents Required for IEC Code Registration

How TRUSTRA ADVISORY Simplifies Your IEC Application

Navigating government portals and understanding specific documentation requirements can be time-consuming and complex. TRUSTRA ADVISORY is here to provide expert assistance and streamline the process of obtaining your Importer Exporter Code in India.

Here's how we partner with you:

• Expert Information and Guidance: We provide detailed, up-to-date information on the IEC application process, including eligibility criteria, required documents, and procedural nuances.
• Application Preparation: Our team assists in accurately preparing all necessary documentation, ensuring your application form is complete and compliant.
• Seamless Application Submission: We manage the submission of your IEC application to the Directorate General of Foreign Trade (DGFT) on your behalf, ensuring accuracy and timeliness.
• Proactive Follow-up and Tracking: We actively track the progress of your application and liaise with the authorities, helping to navigate any potential roadblocks or delays efficiently.
• IEC Certificate Facilitation: Once your IEC is approved, we assist in obtaining and delivering your official IEC certificate to you.
• Dedicated Expert Consultation: Our experienced professionals are available to provide personalized guidance and answer any queries you may have regarding IEC registration or related international trade matters.

Partnering with TRUSTRA ADVISORY for your IEC application saves you valuable time and ensures the process is handled accurately and efficiently, allowing you to focus on building your import and export business.

Unlock Global Opportunities. Get Started with TRUSTRA ADVISORY Today!