An IEC is necessary for import/export of goods. The first requirement before you start an import/ export business in India is to obtain an IEC. IEC Code is unique 10 digit code issued by DGFT – Director General of Foreign Trade, Ministry of Commerce, Government of India. An IEC Number allotted to an applicant shall be valid for all its branches/divisions/units/factories as indicated on the IEC number.
However, IEC is not required under following circumstances:
1. Import/export of goods for personal use, which is not connected with trade, manufacture or agriculture.
2. Import/export by government ministries and departments, and certain notified charitable organizations.
In case the import/export is of services or technology, IEC is required in only limited circumstances, when import/export is in 'specified services' or 'specified technologies', i.e. services or technologies in which international trade is restricted by the Government of India as they pertain to national security, such as dealing in nuclear weapons, automatic guns, etc.
Procedure for IEC Registration
1. Applicant can apply for online Registration at DGFT Site(http://dgft.gov.in)
2. Click on Importer Exporter Code (IEC) and select Online IEC Application.
3. Create Login ID by entering PAN details of the Entity.
4. Complete all details by filling relevant information online like:
a) IEC Master
d) Pay Fee through any designated bank online
e) Attach documents
5. The applicant can preview the application for correctness.
6. After fulfilling the details, the applicant will sign the Application and submit the same.
7. After completion, a Customer Reference Number is generated.
Documents required for IEC Registration
1. Digital Photograph (3x3cms) of the Signatory Applicant.
2. Copy of PAN card
3. Bank Certificate or canceled bearing the applicant entities name.
Advantages of IEC Registration
1. It is the primary proof for a firm as an Importer/ Exporter in India.
2. It is submitted to various government authorities to obtain benefits in respect of their export and import from customs, DGFT, Export Promotion Council etc.
3. It acts as a license for Importing and Exporting of goods.
4. Through IEC number, Goods are cleared from the custom authorities.
5. It provides dealer code details along with the details of the port from which goods are being imported and export.
6. IEC reduces the transport of illegal goods.
7. IEC number shall be valid for all the divisions / units and factories indicated on the IEC number