IMPORT EXPORT CODE (IEC)

Import Export Code

The import Export Code is a 10-digit unique number issued by the Directorate General of Foreign Trade (DGFT) to a business entity for import and export in India. The Import Export Code helps the business grow in the global market. To clear customs, the trader must ensure that the importing entity has IE code and GST registration before initiating the import of goods.
If an importer does not have both Import Export Code and GST Registration, the goods will be stuck at the port and will start incurring demurrage charges or could be destroyed. Once issued the Import Export Code is valid throughout the existence of the entity and there is no need to renew the code.

Benefits of Import Export Code

Registration

The Import Export Code registration helps traders open the doors to venture into the global market, including registration in online e-commerce operators

Government Schemes

Businesses can avail government schemes like the Merchandise Export from India Scheme (MEIS), the Service Export from India Scheme (SEIS), and others from customs and export promotion

Compliance Requirements

No compliance requirements POS registration and hence maintaining the business is relatively simple

Tedious

The process of obtaining the Import Export Code is not tedious and can be obtained with minimal, basic documents.

Procedure of Import Export Code

Required Documents

All the required documents, including bank details and DSC, have to be submitted.

Foreign Trade

The online Import Export Code application form will be filed with the Directorate General of Foreign Trade (DGFT).

Authorities

Once the documents and application are verified by the authorities, the import export code will be granted as a soft copy to the entity.

Documents Required for Import Export Code

As a proof of Identity:

PAN card of the company (not applicable in the case of the proprietor)
Applicant’s PAN and Aadhar card (driving license / Aadhar / voter ID)
Incorporation certificate / partnership deed
Address proof (electricity bill / rent agreement / sale deed of the office location)
Copy of cancelled cheque leaf / banker certificate of the current account in the name of the company.

Eligibility Criteria of Import Export Code

Business

Sole proprietorship, partnership, private limited companies, and charitable organizations dealing with import and exports of goods can register for import export code, irrespective of the size. However, an Import Export Code is not required for import / export of goods for personal use, which are not connected with trade, manufacture, or agriculture. There is no need for a business set up.

FAQs

Q. Is there a tax levied based on Import Export Code?

No, Import Export Code is not a tax registration. So, no tax is levied based on Import Export Code during import or export of goods or services. However, customs duty may be levied.

Q. Who must obtain Import Export Code registration?

Form MGT 14 and SH 7 are required to be filed with the Registrar within 30 days from the date of passing the resolution for the increase in authorized share capital.

Q. How long does it take to obtain Import Export Code registration?

Import Export Code registration can be obtained from the DGFT in 10-15 working days after submission of all required documents and applications.

Q. What is the penalty for not having an Import Export Code?

IE Code is not a mandatory registration, only importers and exporters of goods or services must have Import Export Code. Therefore, there is no penalty for not having Import Export Code; however, import/export will not be possible without an Import Export Code.

Q. How long is the Import Export Code valid for?

Import Export Code is valid for the lifetime of the entity and renewal is also not necessary.

IMPORT EXPORT CODE (IEC)