IEC Full Form, Eligibility, Validity, Application

IEC Full Form, Definition

Many times people say they have an "Import-Export Business". It basically means they trade goods across international borders. In India, to be able to trade goods across the border it is necessary for an individual/ company to acquire an IEC. IEC or Import Export (IE) Code is a registration which provides the applicant with a 10-digit  code which is issued by the Directorate of Foreign Trade (DGFT), Ministry of Commerce, as well as,  the government of India to companies/ individuals trading to/and from India. .Let's look at this IEC, full form, eligibility, validity, application.

IEC Legal

The current system of the IE Code registration and issuance of the IEC was introduced in the year 2006 on 27th July by DGFT  in a policy circular No. 15 (RE-2006)/2004-2009. In addition to this, Eligibility condition and Legal Provisions are given for IEC Code Number Application in Foreign Trade (Regulation) Rules, 1993 Ministry of Commerce, Notification No. GSR 791 (E), dated 30-12-1993.

IEC Eligibility

Importers- Importers who are looking to import goods into India are required to register for IEC. The importers also need to quote the IE Code while clearing the customs. In addition to this, banks require the IE code of the business/ individual while sending money abroad.

Exporters- Exporters who are looking to export goods from India are required to register for IEC. The exporters also need to quote the IE Code while sending shipments. In addition to this, banks require the IE code of the business/ individual while receiving money from abroad.

Proprietors- It is not necessary to incorporate a company in order to obtain an IE Code in your name, individual proprietors of a business can also obtain an IE code.

Features of the Import Export Code(IEC) Registration

• Potential Global Exposure: IEC enables businesses to expand their potential outreach by moving from local markets to national markets and over and across the borders to international markets.
•  Benefits from the government: The government of India is always helping to encourage exports from the country. To this end, the DGFT, Customs and Exports promotion Council provide companies with export scheme benefits enabling and encouraging exports via the IEC Code Registration.
• No Renewal Hassle: The DGFT issued IE Code is valid for the entire lifetime of the applicant and hence there is no need for renewing your Import Export license, again and again, leaving you with only one-time registration costs.
•  Annual Compliances: Transactions and shipments done with the help of the IEC number don't have to be reproduced anywhere as opposed to tax returns. There are no mandatory annual compliances for transactions done via the IEC registration
• Anyone, Anywhere: As mentioned previously, it is not necessary to be a business entity in order to register IE Code any individual looking to be involved in the import-export of goods can

Exemptions for IE Code

• One who is exporting or importing goods for personal use and not for business manufacture or agriculture.
• One who is exporting or importing from or to Nepal or Myanmar which should not exceed Rs 25,000 in a single assignment and should be through Indo-Myanmar border areas
• Ministries or the department of central government or state government.

Granting of the IEC Number

The application for granting of the IEC code should be made by the registered office for registered companies and the head office of other entities to the nearest regional authority of Directorate General Foreign Trade. The form for the application of IEC Code falls under the "Aaayat Niryaat Form- ANF2A". [Click to Download Form].  This form should be accompanied by the documents prescribed.

The DGFT issues only one IEC number against one PAN number. All proprietors can have only one IEC issued against their name. Multiple IEC's issued against a single PAN, name are liable for surrender and cancellation with the regional offices.

The list of the Regional offices can be found in the following PDF(Click to download): Appendix 18D (Regional Licensing Authorities of DGFT)

Validity, Duplicate, Surrender of IE Code

Validity: The IEC number allocated against one PAN is valid for the entire lifetime fo the applicant/ business and it is valid for all its branches/divisions/factories. Duplicate: In case of a lost/ misplaced IEC number the issuing authority, DGFT, will consider a request for the grant of a duplicate copy IEC number, if it has been produced with an affidavit. Surrender:  In case the trader wishes to discontinue their operations, they might surrender their license to the issuing authority. When the authorities receive such an intimation of cancellation from the trader, the authority cancels the license with immediate effect and transmit the same electronically to the DGFT,  and also for forwarding the transmission towards Customs and Regional Authorities.

Guidelines for Application of IEC Code

Mandatory Requirements to apply for Import Export Code

• Pan Number
• Current Bank Account
• Bankers Certificate
• IEC Code Number  Government application fee has been prescribed as  ₹ 250. To get the IEC number instantly it is advisable to make the payment for the same online.
• The physical application that you make should reach the DGFT within 15 days of the online submission

Checklist of Documents for IEC Code

• Covering Letter on the COmpany's letterhead requesting the issue of a new code.
• Two Copies of the Aayat Niryaat Form  (ANF2A) must be submitted to your regional  Jt.DGFT Office.
•  Each page of the Application should be signed by the applicant
• Part 1 and Part 4 of the application has to be filled mandatorily
• No hard copies of Part 1 may be submitted. However, in cases where applications are submitted otherwise, a hard copy of Part 1has to be submitted
• Only relevant portions of part 2 need to fill up by the applicant.
• Certificate from the Banker of the applicant firm  in the format prescribed in the Appendix 18A
• Self-attested copies of PAN Card or PAN issuing letter issued by Income Tax authority
• A self-addressed envelope with Rs.25/- postal stamp for delivery of IEC certificate by registered post or challan/DD of Rs.100/- for speed post.

REgistering an IEC Code can turn out to be a tedious task especially when you are handling major shipments and are in the process of setting up your export-import business. Here at LegalRaasta, we have comprehensive CA/CS Services which help you register the IEC code with ease, in the quickest time and at the most competitive rates across the country. Call +91-8750008585 with your requirements like   Company Registration, GST Registration, PAN Card Registration as well as, IEC Registration.