Startup-Import Export Code

Overview

An Importer-Exporter Code (IEC) is really important if you want to bring things into India or send them out. It is like a special ID number for your import or export business. You have to get an IEC unless the government says you don't need one. But if you are providing services and not goods, you usually don't need an IEC, unless you want to get special trade benefits from the Foreign Trade Policy.

What is the Importer Exporter Code?

The IEC, which stands for Importer Exporter Code, is a special 10-digit code made up of letters and numbers. It is given to a business based on their PAN (Permanent Account Number). If an individual or a business wants to do international trade, they can obtain an IEC. Individuals have the option to apply for an IEC using either their company's name or their name.

Benefits

Business Expansion: IEC helps you take your products or services to the global market and grow your business.

Plethora of advantages: Companies can enjoy various benefits related to their imports and exports through their IEC registration, such as benefits from DGFT, Export Promotion Council, Customs, etc.

No Return Filing: IEC doesn't involve the need for filing any returns. Once you have it, you don't have to follow any specific process to maintain its validity. Even for export transactions, no returns need to be filed with DGFT.

Easy Application: Obtaining an IEC code from DGFT is a relatively straightforward process, taking 10 to 15 days after submitting your application. You don't need to provide evidence of any prior export or import activities.

No Renewal Required: An IEC code remains effective for the entire life of your business entity and does not require renewal. Once obtained, it can be used for all export and import transactions.

Tax And Process

IEC Registration and Taxes: Registering for IEC does not require tax filings, but customs duties may still apply.

Service Exports Incentive: The Service Exports from India scheme offers incentives ranging from 3% to 5% of net foreign exchange earned to all service exporters who outsource services.

Export Promotion Schemes: The Foreign Trade Policy 2015-20 includes two schemes, MEIS and SEIS, aimed at offsetting infrastructure inefficiencies and related costs for goods and services with high-profit potential in global markets but facing external challenges. Additionally, GST-registered exporters filing a Letter of Undertaking (LUT) can enjoy tax exemptions for their exports, and if taxes are prepaid, they can claim a refund, while importers and exporters receive various subsidies to encourage IEC registration, ultimately benefiting the Indian economy.

Documents Required

Proof of Establishment/Incorporation/Registration: To apply for IEC, certain types of firms like Partnership, Registered Society, Trust, HUF, and others must provide a certificate showing their establishment, incorporation, or registration.

Proof of Address: You can use various documents as proof of address, including Sale Deed, Rent Agreement, Lease Deed, Electricity Bill, Telephone Landline Bill, Mobile Post-Paid Bill, MoU, Partnership Deed, and for proprietorships, documents like Aadhar Card, Passport, and Voter ID are accepted. If the address proof isn't in the firm's name, you need to submit a No Objection Certificate (NOC) from the premises owner along with the address proof in a single PDF document.

Proof of Firm's Bank Account: You need to provide proof of your firm's bank account, which can be shown through a Canceled Cheque or a Bank Certificate.

Digital Signature or Aadhaar: You should have an active Digital Signature Certificate (DSC) or Aadhaar card of a firm member for submission.

Active Bank Account: Your firm should have an active bank account as you'll need to enter its details in the application and make online payment for the application fee.

Procedure

Step 1: Go to the DGFT website.

Step 2: On the homepage, click on the 'Services' tab.

Step 3: From the drop-down list, select 'IEC Profile Management.'

Step 4: A new page will appear. Click on the 'Apply for IEC' option.

Step 5: Click on the 'Register' option and provide the necessary information. Then, click 'Send OTP.'

Step 6: Enter the OTP you receive and click 'Register.'

Step 7: Once the OTP is validated successfully, you'll receive a notification with a temporary password. You can change this password after logging into the DGFT website.

Step 8: Log in to the DGFT website using your username and new password.

Step 9: On the DGFT website, click on 'Apply for IEC.'

Step 10: Fill out the application form in ANF 2A format, upload the required documents, make the necessary payment, and click 'Submit and Generate IEC Certificate.'

Step 11: DGFT will generate your IEC code, and you can print your certificate once the code is generated.

FAQ's