How to Apply for an IEC Code: Step-by-Step Guide for Exporters and Importers

What is the IEC Code?

The Import Export Code (IEC) is a unique 10-digit identification code issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, Government of India. This code is mandatory for any business entity engaged in import or export operations in India. Whether you’re dealing with goods or services, the IEC acts as a vital authorization to track and manage shipments effectively.

While IEC is indispensable for most trade transactions, there are exceptions where it may not be required. Understanding these nuances can help traders operate smoothly within the regulatory framework.

IEC Code and PAN Number Integration

Since August 2018, the IEC Code has been integrated with the PAN (Permanent Account Number) of the applicant. This integration simplifies the process and eliminates the need for an additional IEC number. With this policy change, the e-IEC is essentially the applicant’s PAN.

Another important update is that obtaining an IEC Code does not necessitate GST registration. This change has made it easier for small-scale traders and businesses to enter the global market without additional tax compliance burdens.

Can One Import/Export Without an IEC Code?

No, the IEC Code is a mandatory requirement for engaging in international trade. Without this code:

• You cannot export or import goods or services legally.
• Financial institutions will not process international transactions linked to trade.
• Shipments cannot be sent or received without quoting the IEC Code.

Hence, obtaining an IEC Code is the first and foremost step for any entrepreneur or organization looking to expand their business globally.

Why is an IEC Code Required?

An IEC Code offers several advantages for businesses:

1. Easy Entry to Global Markets

An IEC Code is globally recognized, marking you as a registered exporter or importer. It allows businesses to expand their operations beyond borders and explore new markets.

2. Lifetime Validity

Once issued, the IEC Code remains valid for a lifetime. There is no requirement for renewal or annual maintenance, making it a hassle-free registration.

3. No Filing of Returns

Unlike other business registrations, IEC holders are not required to file periodic returns. This reduces the administrative burden for businesses.

4. Access to Incentives and Benefits

IEC holders can avail themselves of various incentives and benefits provided by the Customs Department, Export Promotion Councils (EPCs), and DGFT under different export schemes.

5. Credibility and Compliance

Having an IEC ensures all export-import transactions are documented. This makes compliance with legal and regulatory requirements seamless and enhances your business’s credibility.

6. Simplified Banking Transactions

Financial institutions require an IEC Code to process international trade transactions. It streamlines fund transfers and reduces the chances of payment delays.

7. Support for Export Promotion

With an IEC Code, businesses can access eBRC (electronic Bank Realization Certificates), which are essential for availing export-related incentives and schemes.

Documents Required for IEC Code Application

Applying for an IEC Code is straightforward, especially with the transition to an online application process. Below is the list of documents you need:

Bank Certificate or Cancelled Cheque

A bank certificate (ANF-2A) or a pre-printed cancelled cheque is mandatory.

Address Proof of the Firm

You can use any of the following documents depending on your business entity:

• Sale deed
• Rent agreement
• Lease deed
• Electricity or telephone bill
• Mobile postpaid bill
• Partnership deed
• Memorandum of Understanding (MoU)

Identity Proof

For proprietorship firms, identity proof such as an Aadhaar Card, Passport, or Voter ID is required.

No Objection Certificate (NOC)

If the business premises are not owned by the applicant, an NOC from the property owner along with address proof should be submitted.

Note: Documents must be uploaded digitally in PDF or JPEG format with a file size limit of 5MB.

Step-by-Step Guide to Applying for an IEC Code Online

Here is the detailed process for obtaining an IEC Code through the DGFT portal:

Step 1: Visit the DGFT Website

Go to the official Directorate General of Foreign Trade (DGFT) website. This is the central platform for submitting your IEC application online.

Step 2: Start the Online Application

Click on the “Online IEC Application” option. This will redirect you to a new window where the IEC registration process begins.

Step 3: Submit Your PAN Details

Enter your PAN Card number, as the IEC Code is now integrated with the PAN. This ensures that the applicant’s identity is verified. After submitting, you’ll proceed to the next page.

Step 4: Verify PAN Information

Provide additional details like your name and date of birth/incorporation as per the PAN Card. Verify the information and proceed by clicking the “Submit” button.

Step 5: Enter Contact Details

Provide your mobile number and email address. A One-Time Password (OTP) will be sent to both. Enter the OTP to authenticate and proceed.

Step 6: Generate ECOM Reference Number

Once verified, you’ll receive a 20-digit ECOM (e-commerce) reference number. This unique identifier links your application and helps track its progress.

Step 7: Fill the Application Form

Complete the detailed application form by providing information about your business, including its nature, type, and address. Ensure accuracy since errors may delay approval.

Step 8: Upload Supporting Documents

Upload the required documents digitally (e.g., bank certificate, address proof, PAN copy). Make sure these documents are in PDF or JPEG format and do not exceed the file size limit of 5 MB.

Step 9: Pay the Registration Fee

Pay the IEC application fee, which is Rs. 250, through online methods such as credit/debit cards or net banking. This completes the payment process for your application.

Step 10: Submit the Application

Review the information and documents provided. Once satisfied, click the “Proceed” button to finalize your application. Your details will now be submitted to DGFT for processing.

Step 11: Receive e-IEC Certificate

After successful submission, the application will be reviewed by DGFT. If approved, you’ll receive your electronic Import Export Code (e-IEC) certificate via email. This document confirms your registration.

Step 12: Check Status Online

If needed, you can check your IEC Code status on these platforms:

• DGFT Website: https://dgft.gov.in/
• ICEGATE Website: https://www.icegate.gov.in/index.html

Timeframe: It typically takes 10 to 15 days to process and receive the IEC Code online after submission.

Key Points to Remember:

• You can save a partially completed application and continue later.
• Keep the Customer Reference Number and ECOM Reference Number handy for tracking.
• Double-check your details and documents to avoid errors or rejection.
• Apply only one IEC Code per business and PAN.
• If your details change after issuance, update them on the DGFT portal.

Do’s and Don’ts While Applying for IEC Code

Do’s

1. Accurate Information: Provide correct details to avoid rejection or legal complications.
2. Save Reference Numbers: Keep your ECOM and customer reference numbers until the IEC is issued.
3. Check Exemptions: Verify if your business is exempt from requiring an IEC Code before applying.

Don’ts

1. Multiple Applications: Avoid applying for more than one IEC Code against the same PAN.
2. Incomplete Information: Double-check all details before submission to avoid delays.
3. Neglect Updates: Update your IEC Code information annually, even if no changes are made.

Websites to Check IEC Code Status

1. DGFT Portal: https://dgft.gov.in 
2. ICEGATE Portal: https://www.icegate.gov.in/index.html 

Both platforms allow you to monitor the status of your IEC application or make modifications if necessary.

Conclusion

The IEC Code is a crucial element for businesses looking to explore global trade opportunities. Its benefits extend beyond mere compliance, offering exporters and importers a credible and streamlined way to conduct international transactions. With a simple online application process and lifetime validity, obtaining an IEC Code is an investment towards expanding your business’s reach and reputation.

Whether you’re a budding entrepreneur or an established entity, securing an IEC Code is your first step towards achieving success in the global marketplace.

Also Read: How to Apply for a Company PAN Card in India