IEC Registration

What is IEC Registration?

IEC registration, also known as Import Export Code registration, is a 10-digit code issued by the Directorate General of Foreign Trade (DGFT) in India. It is required for businesses or individuals involved in import-export activities and serves as legal documentation of an entity's existence, allowing them to trade goods and services globally.

You need IEC Code

1. When clearing goods through customs as an importer
2. When transferring funds overseas through a bank as an importer
3. When dispatching goods at the customs port as an exporter
4. When receiving foreign currency directly in your bank account as an exporter

You don’t need IEC Code

1. When engaging in any import or export activities.
2. When engaging in domestic trade within your own country.
3. When the value of goods does not exceed the specified limit set by your country's customs authorities.
4. When not involved in any restricted or prohibited goods that require an IEC code for import or export.

Why is IEC Registration Important ?

• IEC registration provides opportunities for expansion, including exploring new markets, finding potential customers abroad, and establishing global trade relationships.
• IEC registration is generally required for exporting physical software (e.g., on CDs, hard drives) from India, while its necessity for online software services, open-source software, and software development services can vary.
• An IEC registration is necessary for businesses to import or export goods from India. This requirement has been set by the government to regulate international trade and ensure transparency.
• Government benefits are available to entities with a valid IEC, including subsidies, incentives, and export promotion schemes that can greatly enhance profitability.
• Banks typically require IEC registration to process international transactions, as it is an essential document for businesses to receive foreign remittances and conduct foreign currency transactions.

How to Obtain IEC Registration ?

Eligibility: Any individual or business entity can apply for IEC registration, irrespective of size or turnover. The process is open to both manufacturers and traders involved in import or export activities.

Application Process: To obtain IEC registration, applicants need to submit an online application through the DGFT's website. The application requires details such as the applicant's PAN, Aadhaar card, bank details, and a self-attested photograph. Additional documents, such as a cancelled cheque and passport copy (in case of individuals), may also be required.

Fee Payment: Upon submitting the application, applicants are required to pay the prescribed fee online. The fee varies based on the type of applicant, i.e., individual or company.

Verification and Issuance: Once the application and fee payment are completed, the DGFT verifies the provided information. If everything is in order, the DGFT issues the IEC certificate within a few working days. The certificate is valid for a lifetime unless cancelled or suspended by the government.

Conclusion

By obtaining an IEC, businesses have the opportunity to tap into new markets, diversify their customer base, and maximise their growth potential. Therefore, if you are considering expanding your business beyond borders, it is important to prioritise IEC registration and unlock a world of opportunities.