Overview of IEC Registration
The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industries, is responsible for issuing the Import Export Code (IEC) registration in India. This ten-digit code plays a pivotal role for Indian companies looking to expand their business through import and export activities.
The primary purpose of the Import Export License Certificate is to regulate and monitor foreign trade activities within the country.
Obtaining an IEC registration is mandatory for any business seeking to engage in import and export operations in India. Without this essential license, a company cannot participate in international trade. Furthermore, to avail of various government incentives and benefits, having an IEC registration is imperative.
The Reserve Bank of India has mandated that all traders must provide their Import Export Code when conducting any payment transfers related to foreign trade.
In today's intensely competitive business environment, companies are compelled to venture beyond their local boundaries to stay competitive and tap into new markets. This global expansion is driven by continuous innovation, the rise of e-commerce, and the need to differentiate from domestic alternatives. Businesses have various avenues to extend their reach beyond domestic markets, such as forging partnerships with foreign brands, establishing overseas franchises, setting up subsidiary or branch offices abroad, or engaging in import-export activities. However, conducting business on a global scale is a complex endeavor that requires careful consideration.
Once an entity obtains an Import Export Code (IEC), it remains valid for the entirety of the organization's existence and does not require periodic renewal. With an IEC in hand, a company can seamlessly participate in import and export operations without any hindrances.
Benefits of IEC Registration
- Global Market expansion
- Access to benefits from Export Promotion Council, DGFT, and Customs.
- No Return Filings
- Easy Acquisition
- Lifetime Validity
- Government Identification
Documents required for IEC Registration
- Proof of incorporation/registration document
- Passport-sized photograph
- PAN details
- Valid ID proof (Aadhar card, passport, voter ID)
- Active bank account dealing in foreign exchange
- Address verification documents
- RBI approval letter (if applicable)
- Banker's certificate or cancelled cheque
- Debit/credit card or net banking account
- Details of proprietors, partners, or directors
- Active Aadhaar card or Digital Signtature Certificate
Key features of IEC Registration
- IEC registration is mandatory for any business engaging in Import/Export activities.
- It serves as proof of a firm's involvement in international trade.
- Management System Certification
- IEC has a lifetime validity and does not require renewal.
- Individual or legislative purposes do not mandate IEC for import/export.
- IEC is essential for foreign bank transfers related to trade.
- It holds significance across all aspects of an importer/exporter's business.
Exemption of IEC
Non-commercial individuals
Specific Borders
Trade from Indo-Myanmar border zones & China under Rs.25000.
When is IEC Registration required?
- IEC registration is essential for importing and exporting goods, as it includes vendor code details linked to the port of import/export, helping curb illegal transportation of goods.
- Having an IEC number is a prerequisite for customs clearance as an importer.
- Banks require IEC registration to facilitate international money transfers.
- Exporters need IEC registration at customs ports to ensure smooth clearance of their shipments.
- IEC registration becomes necessary when an exporter receives foreign currency payments directly into their bank account.
- IEC registration serves as a verification mechanism for foreign governments when dealing with traders from other countries.
For Import Export Code (IEC) Registration, please contact us: Ornate Quality Services, Phone: +91-11-41400596, Mobile: +919266333338, Email:chetan@ornatequality.com Contact us
