The Importer Exporter Code (IEC) is a mandated business identification number for organizations or people importing and exporting products and services in India. The Directorate General of Foreign Trade (DGFT) issues IEC, which is a basic requirement under the Foreign Trade (Development and Regulation) Act of 1992. Here is a summary of the IEC registration procedure, including its benefits and relevance.
An IEC is a 10-digit unique identifier that enables businesses to conduct international trade. Whether importing raw materials or exporting finished items, this code is necessary for smooth global operations. Importantly, it applies to both commercial and service-oriented businesses.
IEC Registration Process
Preparation: Gather the required documentation, including:
PAN card for the business or individual.
Proof of business address (energy bill, lease agreement, etc.).
Bank account information (canceled check or bank certificate).
Aadhaar or passport (for proprietors).
Online Applications: Visit the DGFT website and register via the e-IEC portal. Fill out the form and upload the relevant papers.
Fee Payment: Pay the required fee online.
Verification and Approval: After applying, the DGFT validates the information. If all criteria are met, the IEC will be provided online within 1-5 business days.
Benefits of IEC:
Global Market Access: Creates opportunities for international trade.
Simplified Compliance: Simple process with little requirements.
Business Growth: Promotes brand expansion and profitability through globally exposure.
Legal recognition establishes the company as a legal participant in international trade.
Validity and Modifications
IEC is valid for life and requires no renewals. To guarantee compliance, firms must update their IEC details on an annual basis, as required by DGFT laws.