In today’s global market, businesses are constantly exploring international opportunities. Whether you want to import goods from other countries or export products worldwide, one essential requirement stands in your way — the IEC, or Import Export Code.
Let’s delve into what an IEC is, how to apply for one, and why it’s highly beneficial for your business.
What is IEC (Import Export Code)?
The Import Export Code is a 10-digit identification number that is issued by the Directorate General of Foreign Trade under the Ministry of Commerce, Government of India.
It is required by law for any business or entity dealing in imports or exports of goods and services to and from India. Without an IEC, you cannot operate any international trade legally.
IEC: Your business passport for worldwide trade.
Who needs an IEC Code?
You need an Import Export Code if you are:
- A manufacturer or trader who imports raw materials.
- A company that exports products or services.
- A startup or e-commerce seller looking to go global.
- Professional/freelancer offering crossborder services, for example, in the sphere of IT, design, consulting.
Even if you’re not a large corporation, freelancers, small businesses, and MSMEs can and should apply for an IEC if they ever plan on trading across borders.
Documents Required for IEC Application
Before applying, keep the following documents ready:
- PAN Card of the business or individual.
- Aadhaar Card / Passport / Voter ID. (for identity proof).
- Business Address Proof – Rent agreement, electricity bill, or sale deed.
- Bank Account Details – Cancelled cheque or bank certificate.
- Digital Signature (optional) – In order to verify this online.
How to Apply for IEC Code: A Step-by-Step Guide
Application for an IEC is simple and can be made online through the DGFT website.
Step 1: Visit the DGFT Website
Go to the official DGFT portal and click on “Apply for IEC”.
Step 2: Sign-up/Login
Create an account with your email ID and mobile number.
Step 3: Filling up the Application Form (ANF-2A)
Provide business information, PAN, bank details, and any other information required.
Step 4: Upload Documents
Please attach scanned copies of your PAN, address proof, and bank details.
Step 5: Payment of Fees
A small government fee of ₹500 is charged for IEC registration.
Step 6: Receive IEC Certificate
You would receive your IEC Code on your registered email within 1-2 working days, once approved.
Benefits of Having an Import Export Code
Having an IEC accrues many business-related benefits:
- Expand Business Globally
Open the door to international customers and suppliers.
- Avail Government Benefits
Get export incentives, tax exemptions, and financial support from schemes like MEIS and SEIS.
- Easy customs clearance
Facilitates smooth import/export without any delay.
- Receive International Payments Easily
Allows you to receive foreign currency directly into your business account.
- Lifetime Validity
IEC is valid for life, and no renewals are necessary unless you make changes to it.
When IEC Is Not Required
IEC is not required in the following cases:
- Goods imported/exported for personal use, not for business.
- Import/export done by Government departments or charitable organizations notified by DGFT.
Conclusion
An IEC is the first and most important step toward entering the world of international trade. It’s fast, inexpensive, and gives your business a professional edge when dealing with overseas clients. If you’re planning to extend your business across the globe, then applying for an IEC is the wisest step you could take today!