Import Export Code: Know How To Obtain The 10-Digit Code & What It Entails

For the purpose of importing into or exporting from India, an Importer-Exporter Code, or IEC, is required. IEC is a 10-digit code that is valid forever for all of the branches it mentions.

Since India's exports are increasing in areas like engineering products, jewellery, and electronics items, among others, it is a great time to start exporting your products. However, despite how promising and enticing the international market appears, there are several compliances and laws that one must be aware of in order to become an officially certified exporter.

Obtaining an Import Export Code would be one of the first steps to do (IEC). To acquire an IEC online, simply register for an account on the DGFT website. You may do so by selecting IEC Profile Management from the Services menu. After making an account, you must log in to submit an IEC application. After completing the application form in the ANF 2A format and uploading the required papers, click on Submit and Generate IEC Certificate button to acquire the IEC code.

Who Can Obtain IEC in India?

The kind of business that can obtain an IEC may be a sole proprietorship, partnership, LLP, limited liability company, trust, HUF, or society. Since the IEC will be issued separately by the DGFT following an application, the PAN card cannot interchangeably be used as the IEC by default following the implementation of GST, the official claims.

What to Know About IEC Application?

The application fee for an IEC code is Rs ₹500, which may be paid online using e-wallets, net banking, and credit or debit cards. Organizations, both registered and unregistered, can apply for the IEC and obtain it within 10-15 working days. If you have a GST number, you need to obtain a different IEC code. Your GSTIN will be used as identification at the exchange level.

An IEC code once allotted is valid for a lifetime, however, the IEC holder must do an electronic verification between April and June of every year to prevent it from being deactivated.

Benefits of Obtaining an IEC

Aside from having a required licence, the IEC provides various advantages. Some claim that the certification can help assist you to take your services or products to a worldwide market and build your business.

Companies that have an IEC can receive many benefits from the DGFT, Export Promotion Council, Customs, and others while importing and exporting. The IEC does not require any returns to be filed. Once granted, there is no need to go through any form of process to keep it legitimate. There is no obligation to file any returns with DGFT for export transactions.

What’s more, is that there are no return filings necessary once you apply for an IEC licence. Once you get your registration done, there isn't any necessity to follow any type of process for establishing its legality. There is also no requirement for reporting any earnings with DGFT.

Common Mistakes While Applying for an IEC

Some typical errors include utilising out-of-date or unusual browsers. It also goes without saying that you must ensure that all information is fully and correctly filled out. Also, check that all white spaces have been removed before attaching a supporting document for your bank account. Ensure that the most recent versions of Google Chrome, Mozilla Firefox, Microsoft Internet Explorer or Edge, and Apple Safari are used.

Do note that the DGFT site will not allow you to proceed unless you completely identify all of the partners, directors, or trustees involved in the applicant company. The system will also display an error if your company name and the name on your bank account do not match.

The Takeaway

Vakilsearch experts can guide you through the entire process from filing out the form to processing the documents. Our IEC registration experts will even keep you informed about the status of your application. The entire procedure with us takes approximately 10 days. Get in touch with our team today!

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