Easy IEC Code Apply: Registration & Charges Simplified
Indian businesses engaged in international transactions such as imports and exports must register for the Importer Exporter Code (IEC). Issued by the Directorate General of Foreign Trade (DGFT), this 10-digit code initiates export and import operations within India.
Suppose you are starting a new export business involving import and/or export transactions. In that case, you must know the documentation required for the IEC code registration process, fees, and other relevant details to kickstart your international business operations.
This article will answer all these questions to help new Indian business entities get their IEC faster.
What is the IEC Code Online Application process?
The steps to the IEC online application process are as follows:
- Visit the DGFT website
- Click on the Services tab on the homepage, followed by the IEC Profile Management option from the drop-down list
- A new page will open. Click on the ‘Apply for IEC’ option on the page
- Click on the Register option. Enter the required details ( select importer exporter) and click on the Send OTP button
- You will receive an OTP on the provided email address and mobile number. Enter the OTP and click on the Register button.
- Upon successful validation of the OTP, you will receive a notification in your email ID containing the temporary password, which you can change after logging into the DGFT website
- Now, once you have registered on the DGFT website, you can log in on the same website using the username and password that you have received
- Once you log in, you will be prompted to update your password, change the default password to your preferred one, and login with your new password again
- Click on the Apply for IEC option on the DGFT website dashboard
- Now click on the Start Fresh Application button
- Enter the general information, details of proprietor/partner/director/Karta/managing trustee, bank information, and other details, declare that all the information that you have provided is correct and accept the terms and conditions
- Next, Check the Application Summary and click on the Sign button to sign the application using a digital token or Aadhaar
- Confirm and proceed to make the payment against the application. For payment, you will be redirected to the Payment Gateway (Bharatkosh). The Application for the IEC Fee is Rs 500. After completing a successful payment, it will be redirected to the DGFT website. The receipt will be displayed. Download the receipt for future reference
The IEC Certificate will be sent via email. It can be downloaded after logging in to the DGFT website and clicking the Print IEC option under the IEC Profile Management
What Documents are Needed for IEC?
To apply for an Importer Exporter Code (IEC) in India, you must prepare several essential documents. Here’s a comprehensive list of the required documents:
Identity and registration proof
- PAN Card: A copy of the Permanent Account Number (PAN) card of the individual, firm, or company.
- TAN: Tax Deduction and Collection Account Number if applicable.
- Certificate of Incorporation (COI): For companies, a copy of the COI or other proof of establishment/registration for various business types (e.g., partnership deed for partnerships, private limited companies, registration certificate for societies or trusts)
Proof of identity for proprietors
One of the following identification documents:
- Voter ID
- Aadhaar card
- Passport copy
Proof of address
Any one of the following can be submitted as proof of business address:
- Sales deed
- Rent agreement
- Lease deed
- Utility bills (electricity, telephone, mobile)
- Memorandum of Understanding (MoU)
- Partnership deed
Note: If the address proof is not in the name of the applicant firm, a No Objection Certificate (NOC) from the owner is required along with the address proof.
Bank account verification
A cancelled cheque from a current bank account in the name of the firm or company. Alternatively, a bank certificate can be provided
Self-addressed envelope
A self-addressed envelope for the delivery of the IEC certificate via registered post
Digital Signature Certificate (DSC)
An active DSC or Aadhaar is required for submission
How to Modify IEC Details Online?
To modify your IEC details, log in to the DGFT website, click My IEC, and then click Modify IEC.
Update the required information, attach the necessary documents, and apply after signing with your digital token. Once you complete the payment, you can download the receipt from the DGFT website.
What is the IEC Code Fee?
The IEC Code fee structure includes two components:
- Government application fee: The official fee for applying for an IEC is ₹500. This payment can be made online using various methods such as credit/debit cards, UPI, or net banking
- IEC details modification fee: In case of making any modifications to your submitted details, you will need to pay an additional IEC code fee of ₹200
If you seek assistance from a professional to complete the IEC registration process, an additional consultation fee will apply. This fee is variable and depends on the professional's expertise and experience.
How to Link Existing IEC Code with DGFT?
Do you already have an IEC code that you want to link with DGFT? Here are the steps to follow:
- Visit the official website of DGFT and login to the portal with a valid credential. If you are not registered on DGFT, register first following the steps mentioned above
- After logging in, click on the Link IEC button on the dashboard or from the Menu by following these steps: My Dashboard -> Importer Exporter Code (IEC) ->Link your profile to IEC
- Now Enter your IEC number, which you want to link to your profile, in the Importer Exporter Code field, and then click on Link IEC
- Now, the IEC number will be validated, and a Digital signature window Will open in a Pop-Up. Proceed with the Digital Signature process with your digital signature details
- After Success in the digital signature process, the IEC Linked successfully message is displayed
How Much Time Does It Take to Issue a New IEC Code?
According to DGFT, the average time to receive a new IEC Certificate is immediately upon successful application submission. New IEC codes are typically issued immediately upon successful application submission and are instantly reflected on Icegate.
IEC Code Renewal Due Date: When do You Need to Renew Your IEC code?
An IEC code is valid for life. However, you need to update it annually. The renewal of the Importer Exporter Code (IEC) is mandatory every year between April and June, with the final deadline being June 30th.
This annual update is essential to keep the IEC active and compliant with regulations. Even if there are no changes to the IEC details, holders must confirm their status online during this period to avoid deactivation of their IEC, which would prevent them from conducting import or export activities.
Benefits of the IEC Code
The IEC code has several benefits for businesses looking to expand internationally. Some of these benefits include:
Expansion of business across borders
The IEC simplifies entry into global markets, allowing businesses to showcase and sell their products internationally. It is a crucial requirement for conducting import and export activities, making cross-border transactions legal and streamlined.
Access to government export benefits
Businesses holding an IEC can claim various government incentives designed to promote exports, such as:
- Merchandise Exports from India Scheme (MEIS): This scheme provides rewards to exporters to offset infrastructural inefficiencies and enhance competitiveness in global markets
- Service Exports from India Scheme (SEIS): Similar to MEIS, this scheme incentivizes service providers to export eligible services, offering Duty Credit Scrips based on net foreign exchange earnings
Tax benefits
Exporters with an IEC can benefit from tax exemptions under the Goods and Services Tax (GST) framework, particularly when filing a Letter of Undertaking (LUT), which allows them to export goods without paying taxes upfront.
Common Mistakes to Avoid while Applying for IEC
Here are a few common mistakes to avoid while applying for IEC:
Not having prerequisite documents
Ensure all required documents are prepared and available before starting the application process. Missing documents can lead to delays or outright rejection of your application.
Inaccurate or incomplete details
Double-check all entries for accuracy. Providing incorrect information or leaving fields incomplete can result in verification issues and may prevent your IEC from being issued.
Not following instructions
Carefully read and follow the guidelines provided by the Directorate General of Foreign Trade (DGFT). Ignoring these instructions can lead to mistakes that complicate the application process.
Disregarding minor details
Pay attention to details such as spelling, spacing, and formatting. Small errors can cause significant problems during verification.
Forgetting annual updates
IEC holders must update their details annually, typically between April and June. Failing to do so can result in the IEC's deactivation, preventing import/export activities.
What to Do if Your IEC Application is Rejected?
If your IEC application is rejected, here are the steps you should take:
Review the rejection letter
Carefully read the rejection letter to understand the reasons for the denial. This will help you identify specific errors or omissions that need correction.
Re-apply if errors are correctable
If the issues mentioned in the rejection letter are correctable, make the necessary adjustments and reapply for the IEC. Ensure that all required documents are accurate and complete.
Consult an expert if you need further help
If you're unsure how to proceed or need assistance addressing the rejection, consider consulting a professional or business consultant specializing in IEC applications. They can provide guidance and help streamline the reapplication process.
Safe and Compliant International Payments with Skydo
For businesses with a new IEC code looking to streamline international transactions, Skydo offers a secure and efficient payment platform.
Aligned with RBI regulations and partnering with reputable banks, Skydo ensures compliance while providing real-time payment tracking, multi-currency support, and lower fees than traditional banks. Its integrated platform handles invoicing, payments, and accounting, simplifying cross-border trade.
With automated compliance checks and foreign currency accounts for Indian companies, Skydo is the ideal companion for businesses venturing into global markets. It complements the benefits of your newly acquired IEC.
Is IEC mandatory?
Yes, an Import Export Code (IEC) is mandatory for businesses engaged in import or export activities in India. It's required to conduct international trade legally.
Do I need GST for IEC?
Who are exempted from IEC?
How much time does it take to get the IEC code?
