What is IEC Number (Importer-Exporter Code)?

The Importer-Exporter Code (IEC) is a specific 10-digit number. Many people search it as “What is IEC number?” So, it is a code for businesses or individuals that involved in international trade. This means it is a compulsory number to import or export goods and services in India. The DGFT issues this code.  The DGFT is the Directorate General of Foreign Trade. You can apply for an IEC from the DGFT portal. In this blog, you will get guidance on the IEC number.

What is IEC Number?

An Importer-Exporter Code (IEC) is a 10-digit unique number. It applies to businesses or individuals involved in international trade. This means they engaged in importing or exporting goods and services in India. The code was issued by the Directorate General of Foreign Trade (DGFT). It works under the Ministry of Commerce and Industry.

This helps with:

a) Customs clearance

b) Foreign Currency Transactions

c) Bank-related activities

d) Trade benefits

e) Export benefits

f) Government benefits and so on.

Thus, from the perspective of "what is iec number", it is a compulsory identification number. This suits every business and exporter for international trade in India.

Who must have an IEC number?

Listed below are the entities that need an IEC number:

Businesses that Import or Export Goods

A business engaged in trading goods across the borders in India. They needs an Import Export Code (IEC). It can include:

a) Manufacturers

b) Traders

c) Wholesalers

d) Retailers, etc.

An IEC serves as the official identification for banks and customs. This helps them to clear shipments and get foreign currency payments.

Service Exporters

Service exporters are a type of entity that gives services to clients in other countries. It suits to:

a) IT companies

b) Financial advisors

c) Designers

e) Consulting Firms

f) Educational platforms

g) Any businesses that receive foreign currency payment.

So, IEC allows them to receive international claims. They can also claim export incentives. It is available under the government claims.

E-commerce Exporters

This means the individual or companies export goods through platforms. The platforms can include Amazon or Flipkart. A small sellers engaged in sending packages abroad through courier or postal services. They also come in this category. This includes those who use these shipping methods for international deliveries.

Thus, IEC helps them to meet customs procedures. They can also claim benefits under export promotion schemes.

Proprietorships and Individuals in Business

A sole proprietorship that deals with import or export activities. They needs to have an IEC number. This needs to access global markets. It also helps in completing cross-border transactions.

However, in the concept of "what is IEC number ". A sole proprietorship can apply for an IEC number.

Limited Liability Partnerships (LLPs) and Companies

All registered companies such as private limited companies and LLPs must get IEC. This number helps them to perform international trade.

It is important that IEC be linked with entities:

a) Permanent Account Number (PAN)

b) Official Bank Account

Thus, companies with this number can have:

a) Customs authorities

b) Foreign Clients

c) Indian Banks.

Exporters Who Claim Benefits

An IEC code helps businesses with several benefits. It includes:

a) Claiming duty drawbacks

b) GST refund

c) Other government export incentives

However, an IEC can be considered as an eligibility proof for several schemes. The exporters can submit applications for these benefits. They can submit it from DGFT or customs.

PAN-Based IEC System

The government has linked the Import Export Code to the PAN of the entity or individual. This is effective from the year of 2021. There is no need of a separate number. So, the PAN becomes an IEC number. This allows individual to register from the DGFT portal. This helps to simplify identification and reduces duplication.

Who are Exempt from the Importer-Exporter Code (IEC)?

There are key things to know about "what is IEC number." So, now we will explore the exemptions from the Import Export Code (IEC).

Here are the exemptions:

a) Government Departments and Ministries

b) Personal Imports and Exports

This means the individuals engaged with import or export goods for personal use. They do not need an Import Export Code (IEC).

c) Small-Value Border Trade

Residents living near the border does not require the IEC. It applies to small traders with specific neighbors if they follow these rules:

• You can trade with Nepal and Myanmar for up to Rs. 25,000 CIF for each shipment.

• They can trade with China for up to Rs. 100,000 CIF for each shipment at certain border points. It includes Nathula, Shipkila, Gunji, and Namgaya.

d) SCOMET Items

The SCOMET stands as Special Chemicals, Organisms, Materials, Equipment, and Technologies. SCOMET items require IEC along with special authorization due to their sensitive nature.

e) Special Entities with Assigned IEC

There are special entities that have a pre-assigned IRC. It covers:

a) Diplomatic Missions

b) Trade fair exhibitions

c) Relief Agencies

d) Returning Indian (Baggage)

e) Hospitals, etc.

Documents Required for Import-Export Code Registration

Here are the documents required for IEC registration:

a) PAN Card of entity or individual

b) Proof of Establishment / Business Registration

• Proprietorship:

Any business registration like Trade License or Udyam Registration

• Partnership firm

Partnership deed

• Company / LLP / Trust / Society

A Certificate of incorporation or relevant registration documents

c) Address Proof of Business Premises

• It includes sale deed, rent/lease agreement, or utility bill. The utility bill can include electricity, water, telephone, or postpaid mobile

• A No Objection Certificate (NOC) from the owner along with address proof. This applies in case of premises are not owned.

d) Bank Account Proof

A canceled pre-printed cheque or bank certificate. These proof must include the holder's name and account details

e) Identity Proof for proprietors or individuals

Aadhar card, voter ID, passport, driving license, etc.

f) Photograph of Applicant for individuals

A Recent passport-sized photo

g) Digital Signature Certificate (DSC) or Aadhaar e-sign

Steps for Importer-Exporter Code (IEC) Registration

However, here you will get another guidance regarding “What is IEC Number”.

Below are the steps for IEC registration:

Step 1: Visit the DGFT Website

You need to visit the official DGFT portal. This is the only government portal for IEC registration.

Step 2: Register as a New User

Next, click on the "Register" option to register it. Then enter your

a) PAN

b) Your Registered Name

c) Email ID

Then, you need to select the user type as per your business structure. The system will give you an OTP in your mobile number and email. Enter the OTP. Once you enter the OTP, set a password. Then, create your DGFT login credentials.

Step 3: Log in to the DGFT Portal

Move to the login page after completing the registration. Put your user ID and password. Then, navigate to the "IEC Profile Management" section under Services. Select the "Apply for IEC" option. Then, you need to click on the "Start Fresh Application". This allows you to start a new application on the DGFT portal.

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

You need to fill out the application form (ANF-2A) with the required details. The details can include:

a) PAN and business name

b) Constitution of the business like Proprietor, Company, LLP, etc.)

c) Date of incorporation or establishment

d) Nature of the business

e) Registered office address and branch details

f) Contact details and email address

g) Bank account number, IFSC code, and branch name

h) Other Required details

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

Step 5: Upload the Required Documents

Next, upload the necessary documents in scanned copies. Each document file must be within 5 MB in size. You should upload only proper documents.

Step 6: Choose the Mode of Authentication

In this step, you need to choose the mode of authentication of your application. You can select Aadhaar OTP that is linked with your registered mobile. There is also an option to use a Class 2 or Class 3 Digital Signature Certificate (DSC). You will get confirmation about your identity and business ownership.

Step 7: Pay the Government Fee

Pay the required fee by making an online payment. Once completed, you will get an acknowledgment receipt. You will get this from the system.

Step 8: Submit the Application

Then, you must click on the "Submit" option to submit your application. The system will give you an Application Reference Number (ARN). You can use this number to track your application progress.

Step 9: Get the IEC Certificate

Once the DGFT checks your application. They will issue the Importer-Exporter Code (IEC). You will get this certificate on your registered email address. The DGFT dashboard also allows you to download the certificate.

Step 10: Verify Status with Customs

You can check the IEC's transmission status after its issuance. The status will be shown as ICEGATE (Indian Customs EDI system). You need log in to the DGFT portal and go to the "Manage IEC" section. This confirms that the code is successfully transmitted to customs for clearance.

So, now you understand that “What is IEC Number”.

What is the validity of an IEC number?

An Importer-Exporter Code (IEC) remains valid for a lifetime. This does not expire or need traditional renewal. Still, it needs to be electronically updated annually from the DGFT portal. This will happen from April 1st and June 30th to remain active and avoid deactivation.

Conclusion

In the discussion of “What is IEC Number”, we have found that it means an Importer Exporter Code. This is a compulsory 10-digit identification number for businesses engaged with international trade. The code is issued by the DGFT. The full name of DGFT is the Directorate General of Foreign Trade. An IEC simplifies customs clearance. It also allows international fund transfers. This has a trade opportunities and government incentives. If you still have a query and need assistance, get help from Online Legal India.

FAQ

Q1. What is IEC Number?

In the question of what is IEC Number, it stands as an Importer Exporter Code. This is a specific 10-digit number issued by the DGFT. It applies to business that deals with importing or exporting goods and services in India.

Q2. Who Issues IEC Number?

The Directorate General of Foreign Trade (DGFT) issues the IEC number.

Q3. Where can I download the IEC Certificate?

You can download the IEC Certificate from the DGFT portal. This is another important update regarding “What is IEC number”.

Disclaimer

This article is for informational purposes only and does not constitute legal advice. Online Legal India is a digital platform. If you require legal assistance, we strongly recommend consulting a qualified lawyer or law firm.