Details about the IEC Registration Process

The Import Export Code (IEC) is a unique 10-digit number issued by the Directorate General of Foreign Trade (DGFT). It is mandatory for any business in India engaged in importing or exporting goods and services. Without an IEC, no individual or company can legally conduct international trade. It serves as a gateway for entering the global market under DGFT regulations. The entire registration process is now fully online. This makes it quick, simple, and more convenient for businesses to apply and grow internationally. In this blog, you will learn the details about the IEC registration process.

What is IEC?

The Importer-Exporter Code (IEC) is a 10-digit unique number provided by the Directorate General of Foreign Trade (DGFT), which works under the Ministry of Commerce and Industry. This code is essential for any individual or business that wants to import or export products or services from India. This code is required for customs clearance, foreign currency transactions, bank-related activities, and to claim export benefits from the government, unless a specific exemption is granted.

Who Needs IEC Registration?

Here is a detailed explanation of who needs an IEC registration:

1. Businesses That Import or Export Goods

Any business that trades goods across India’s borders must obtain an IEC. This includes manufacturers, traders, wholesalers, and retailers who import raw materials, equipment, finished products, or export goods to international markets. The IEC acts as the official identification for customs and banks. It is necessary to clear shipments and receive foreign currency payments.

2. Service Exporters

Entities that provide services to clients in other countries must also register for IEC. This applies to IT companies, consulting firms, financial advisors, education platforms, designers, and any business that earns in foreign currency. Without the IEC, they cannot receive international payments or claim export incentives available under government schemes.

3. E-commerce Exporters

Individuals or companies that export products through platforms like Amazon, Flipkart, or eBay must get IEC. Even small sellers who send packages abroad through courier or postal services fall under this category. IEC is required to comply with customs procedures and to claim benefits under export promotion schemes.

4. Proprietorships and Individuals in Business

A sole proprietor who wants to engage in import-export activities must have an IEC. It is not limited to companies or firms. If an individual runs a small business or operates independently, IEC is still mandatory to access global markets and complete cross-border transactions.

5. Limited Liability Partnerships (LLPs) and Companies

All registered companies, including private limited companies and LLPs, must obtain IEC if they conduct international trade. The IEC must be linked to the entity’s Permanent Account Number (PAN) and official bank account. It enables the organization to deal with customs authorities, foreign clients, and Indian banks.

6. Exporters Who Claim Benefits

Businesses that seek to claim duty drawback, GST refund, or other government export incentives must have a valid IEC. It serves as proof of eligibility under various schemes. Without IEC, the exporter cannot submit applications for these benefits through DGFT or Customs.

7. Exceptions to IEC Requirement

IEC is not required in certain cases:

• Individuals who import or export goods strictly for personal use and not for business.
• Government departments, ministries, and public sector undertakings are involved in official trade operations.
• Non-profit organizations or charitable trusts are notified by the government.

These exemptions are clearly mentioned in the DGFT Handbook of Procedures (Para 2.07).

8. PAN-Based IEC System

From 2021 onwards, the government will link the IEC to the PAN of the entity or individual. PAN serves as the IEC number. No separate number is issued. If a person already has a PAN and registers through the DGFT portal, the PAN itself becomes the IEC. This simplifies identification and reduces duplication.

Where Import Export Code (IEC) Is Not Required

Below are the exemptions from the Import Export Code (IEC):

1. Government Departments and Ministries

Central and State Government departments are exempt from IEC. These include ministries, government agencies, and public sector units. They are assigned permanent IEC numbers by the DGFT and do not need to register separately.

2. Personal Imports and Exports

Individuals who import or export goods strictly for personal use do not need IEC. This exemption applies when the activity is not related to business, manufacturing, or agriculture. For example, sending gifts abroad or bringing household items from another country qualifies under this category.

3. Small-Value Border Trade

Residents near border areas can import or export limited-value goods without IEC, provided it falls under specific conditions:

• Trade with Nepal and Myanmar is allowed up to Rs. 25,000 CIF per consignment.
• Trade with China is allowed up to Rs. 100,000 CIF per consignment through notified border posts like Nathula, Shipkila, Gunji, and Namgaya.

4. SCOMET Items

Any transaction involving SCOMET items (Special Chemicals, Organisms, Materials, Equipment, and Technologies) requires IEC, regardless of the value or purpose. These goods are sensitive and subject to export control.

5. Special Entities with Assigned IEC

Certain entities have pre-assigned IECs. These include diplomatic missions, relief agencies, returning Indians (baggage), hospitals, and trade fair exhibitors using ATA Carnet.

Documents Required for IEC Registration

The following documents are required for IEC Registration:

1. PAN Card (of entity or individual)
2. Proof of Establishment / Business Registration

• Proprietorship: Any business registration (Trade License, Udyam, etc.)
• Partnership firm: Partnership deed
• Company / LLP / Trust / Society: Certificate of incorporation or relevant registration documents

3. Address Proof of Business Premises

• Acceptable documents: sale deed, rent/lease agreement, or utility bill (electricity, water, telephone, postpaid mobile)
• If premises are not owned, include an NOC from the owner along with address proof

4. Bank Account Proof

A canceled pre-printed cheque or bank certificate showing the holder's name and account details

5. Identity Proof (for proprietors or individuals)

Aadhar card, voter ID, passport, or driving license

6. Photograph of Applicant (for individuals)

Recent passport-sized photo (JPEG, typically 3?×?3?cm)

7. Digital Signature Certificate (DSC) or Aadhaar e-sign

IEC Registration Process

Below is the step-by-step IEC registration process:

Step 1: Visit the DGFT Website

Go to the official DGFT portal. This is the only authorized website for IEC registration. Do not use any other platform or agent.

Step 2: Register as a New User

Click on the “Register” button. Enter your PAN, name, mobile number, and email ID. Choose the user type based on your business structure. The system sends an OTP to your mobile and email. Provide both OTPs to finish the registration process. Once done, set a secure password and create your DGFT login credentials.

Step 3: Log in to the DGFT Portal

After successful registration, go to the login page. Enter your user ID and password. Once you log in, navigate to Services > IEC Profile Management > Apply for IEC. Click on “Start Fresh Application.”

Step 4: Fill in the Application Form (ANF-2A)

The application opens in digital form. Fill in all required details like:

• PAN and business name
• Constitution of the business (Proprietor, Company, LLP, etc.)
• Date of incorporation or establishment
• Nature of the business
• Registered office address and branch details
• Contact details and email address
• Bank account number, IFSC code, and branch name

The form checks PAN data and business status directly from the Income Tax database.

Step 5: Upload the Required Documents

Upload scanned copies of the required documents as mentioned above. Ensure each file is under 5 MB in size and in the correct format. Upload only valid and clearly readable files.

Step 6: Choose the Mode of Authentication

You must authorize the application. Select either Aadhaar OTP (linked with your registered mobile) or use a Class 2 or Class 3 Digital Signature Certificate (DSC). This step confirms your identity and business ownership.

Step 7: Pay the Government Fee

Make the required payment through the online payment gateway. You can use UPI, net banking, credit card, or debit card. After successful payment, the system generates an acknowledgment receipt.

Step 8: Submit the Application

After completing the form, uploading documents, and making payment, click on “Submit.” The system assigns an Application Reference Number (ARN). This number helps you monitor your application progress.

Step 9: Get the IEC Certificate

Once the DGFT verifies your application, it issues the Import Export Code (IEC). The certificate is sent to your registered email address. You can also download it from your DGFT dashboard.

Step 10: Verify Status with Customs

After the IEC is issued, check its transmission status to ICEGATE (Indian Customs EDI system). Log in to the DGFT portal, go to “Manage IEC,” and ensure the code is successfully transmitted to customs for clearance.

Cost of IEC Registration

The government charges a fixed fee of Rs. 500 for IEC registration. This payment must be made online through the DGFT portal during the application. No extra government fee is required for issuing the code. If a business chooses to modify its IEC or request a duplicate certificate, a fee of Rs. 200 applies. Annual updates between April and June do not attract any fee. Hiring a professional consultant is optional. Their charges usually range from Rs. 1,000 to Rs. 3,000, depending on the complexity of the work. These consultant fees are not set by the government and vary across service providers.

Benefits of Having IEC

Below are the key benefits of having IEC:

1. Mandatory for Import and Export

IEC is a legal requirement for any person or business that imports or exports goods or services from India. Without it, customs authorities do not allow clearance of goods, and banks do not process international trade payments. It applies to all import-export activities unless specifically exempted.

2. Valid for a Lifetime

Once issued, IEC remains valid for the lifetime of the entity or individual. There is no requirement to renew or revalidate it each year. This reduces the compliance burden and saves time and costs for businesses.

3. Facilitates Customs Clearance and Bank Transactions

IEC acts as a unique identifier at various points of trade. Customs departments ask for IEC to process shipment clearances. Banks need it to release payments for import or export deals. This helps maintain a smooth flow of goods and money across borders.

4. Grants Access to Government Benefits

Only businesses with a valid IEC can avail themselves of export promotion schemes and financial incentives offered by the government. These include the Remission of Duties and Taxes on Export Products (RoDTEP), IGST refunds, and other Foreign Trade Policy benefits notified through DGFT.

5. Allows Export Without Payment of IGST

Businesses with IEC can file a Letter of Undertaking (LUT) under GST provisions. This allows them to export goods or services without paying Integrated GST (IGST) upfront. They also become eligible to claim IGST refunds later under GST rules.

6. Improves Business Credibility

IEC enhances the trustworthiness of a business in the global market. International clients, freight agents, and overseas banks treat IEC as proof of legitimacy. This helps businesses build long-term trade relationships and attract foreign buyers.

7. Acts as a Single Identity for Trade

IEC serves as a single registration number for trade-related activities. Exporters and importers do not need multiple identifiers for interaction with DGFT, customs, or export promotion councils. This simplifies the compliance process.

8. Enables Issuance of Certificate of Origin

Certificate of Origin is a document that proves the origin of exported goods. It is required for claiming tariff exemptions under trade agreements. DGFT issues these certificates only if the exporter has a valid IEC.

9. Promotes Legal and Transparent Trade

IEC ensures that every importer or exporter registers with DGFT. This makes the trade environment more transparent and reduces the chances of illegal transactions or smuggling. Government agencies can also trace business activities easily.

10. Applicable to All Types of Business Entities

IEC is not restricted to companies alone. Sole proprietors, partnership firms, LLPs, trusts, HUFs, and individuals can also apply for it. Service exporters and e-commerce sellers who deal with international clients also require IEC to operate legally.

Conclusion

In conclusion, obtaining an Import Export Code (IEC) is a simple and essential step for any individual or business planning to start international trade. It helps ensure smooth customs clearance, easy foreign transactions, and access to valuable government benefits. The entire process is now online, making registration quick and convenient. To avoid delays and begin global trade confidently, apply for IEC through the official DGFT portal. If you want to do an IEC registration for your business, contact Online Legal India to get proper assistance.