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Import Export code is a ten-digit unique code assigned to an individual/company and is required for every import/export operation. The DGFT is in charge of issuing import export codes. DGFT stands for Director General of Foreign Trade. Importer Exporter Code is the full form of IEC, although it is more commonly known as import export code.

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Import & Export code Registration

Unlike other government licences, the Import Export code does not need to be renewed on a regular basis. However, one needs to update the status of IEC license on DGFT portal on a yearly basis.

Benefits of Import Export License

Obtaining an import-export license can offer several advantages for businesses engaging in international trade.

• Legal Compliance: Having an import-export license ensures that your business complies with the regulations and laws governing international trade. This includes adhering to customs requirements, trade tariffs, and other legal obligations, reducing the risk of fines or penalties for non-compliance.
• Access to Global Markets: With an import-export license, your business gains access to a wider range of global markets. This opens up opportunities to source products from different countries at competitive prices or to export your goods to international customers, thereby expanding your customer base and revenue potential.
• Reduced Costs: Holding an import-export license may enable you to benefit from certain trade agreements, tariff reductions, or duty exemptions negotiated between countries. This can lead to cost savings for your business, making your products more competitive in both domestic and foreign markets.
• Credibility and Trust: Possessing an import-export license enhances your business’s credibility and trustworthiness in the eyes of suppliers, partners, and customers. It demonstrates that your company is serious about international trade and is committed to conducting business in a professional and legitimate manner.
• Operational Flexibility: An import-export license provides your business with greater flexibility in managing its supply chain and distribution channels. It allows you to import raw materials, components, or finished products from overseas suppliers, as well as to export your goods directly to foreign buyers without relying on intermediaries, thus streamlining your operations and potentially increasing profit margins.

Documents Required for Import Export License

Before proceeding to the process of Registration lets have information regarding the documents needed to get Import Export Code License Online in India. The nature of the firm obtaining an IEC may be any of the follows: “Sole Proprietorship, Partnership, LLP, Private Limited Company & Public Limited Company, Trust, HUF and Society”.

The documents that would be required are as follows:

1. PAN of the business entity
2. Address Proof of the applicant’s entity (electricity bill)
3. Registration/Certification Number
4. Bank account details of the entity with Cancelled Cheque
5. Identity proof (Aadhar Card, Voter ID Card, Passport)
6. Passport size photograph

Procedure for obtaining Import Export License

Registration on Governmental Portal

The very first step for obtaining an Import Export License online is the registration part. One can register online through the government portal of DGFT.

Documentation

The very next step after registration is the applying phase. All the documents are arranged and prepared for application.

Application for Import Export License

The next step combines the form filling along with the documents uploading. The “ANF2A” (Aayat Niryat Form 2a) is required to fill along with all the necessary documents attached.

Verification by DGFT

After submission of your application form, it is sent to the DGFT for verification of the documents. Your application may get approved or rejected based on the documents you have uploaded. So one must be careful regarding the documents they need to upload.

Approval and Issuance of IEC Code

This is the final step of obtaining your Import Export Code. Once your IEC application is approved by DGFT, your Import Export Code would be issued to you. In case of online application, you will get e-IEC, once approved by competent authority. You will be informed through email that your e-IEC is available on DGFT website.

IEC Validity and Renewal

Unlike other government licenses, the Import Export Code earlier was not needed to renew on a regular basis. However, after the amendments in Import Export Code related provisions under Chapter 1 and 2 of Foreign Trade Policy on 12th February, 2021 Import Export Code now has to be renewed each and every year. This amendment made the update of IEC code details mandatory for all IEC or e-IEC holders on DGFT portal each year. Even if there are no updates in IEC, the same has to be confirmed online.

Is Import Export Code Sufficient for exporting goods from India?

You need more than just an Import Export Code to operate an export business in India. Although the IE Code is a necessary for beginning export operations, having one is not sufficient. There are other mandatory documents and registrations in place to get going.

The requirements depend on the type of product you are exporting. There are Export Promotion councils for each commodity and you must obtain registration for each commodities you want to export.

For Example – If you are a Spices exporter, you must obtain a Spice Board Registration to export spices from India. Similarly, Tea Board Registration and Coffee Board Registration are required for exporting Tea and Coffee, respectively.

There are several other Export Promotion Councils like APEDA, Rubber Board, MPEDA, TEXPROCIL, CAPEXIL and so on. Apart from that, AD code Registration is required for Foreign transactions and Customs clearance at ports.