An IEC is necessary for import/export of goods from one country to another. The first requirement before you start an import/ export business in India is to obtain an IEC. IEC Code is unique 10 digit code issued by DGFT – Director General of Foreign Trade, Ministry of Commerce, Government of India. IEC stands for Import Export Code or Importer Exporter Code which is represented by a 10 digit number issued by DGFT (Director General of Foreign Trade), Department of Commerce, Government of India. Obtaining this code is mandatory for bonafide companies or individuals who want to start a business of import and export in Indian territory. For example, if you are exporting handloom from India to the United States, you won’t be able to do so without an IEC license.
However, IEC is not required under following circumstances:
1. Import/export of goods for personal use, which is not connected with trade, manufacture or agriculture.
2. Import/export by government ministries and departments, and certain notified charitable organizations.
Documents for IEC:
- A canceled cheque which states the candidate’s printed name or bank certificate.
- Proof of address. You can include any of the following as proof of address:
- Sale Deed
- Rent agreement
- Lease Deed
- Electricity bill
- Telephone Landline bill
- Mobile Postpaid bill
- MOU Partnership Deed
- Aadhar Card | Passport | Voter Id
[In case the address proof is not in the name of the applicant firm, a No Objection Certificate(NOC) by the firm premises owner in favor of the firm along with the address proof is to be submitted as a single PDF document]
Advantages of IE Registration
1. It is the primary proof for a firm as an Importer/ Exporter in India.
2. It is submitted to various government authorities to obtain benefits in respect of their export and import from customs, DGFT, Export Promotion Council etc.
3. It acts as a license for Importing and Exporting of goods.
4. Through IEC number, Goods are cleared from the custom authorities.
5. It provides dealer code details along with the details of the port from which goods are being imported and export.
6. IEC reduces the transport of illegal goods.
7. IEC number shall be valid for all the divisions / units and factories indicated on the IEC number