Import Export Code (IEC) - Business Beyond the Boundaries....

MEANING OF IMPORT AND EXPORT

In the regime of Amazon, Flipkart, OLX etc., sale and purchase of goods has been made so easy. Goods from one corner of the World can be sold and purchased by the other corner on a single click.This purchase/sale of goods/services from one country to another are termed as Import and Export respectively. The very first step to enter into import and export transaction in India is to have Importer Exporter Code or commonly known as Import and Export Code (IEC). Therefore, a Person desirous to carry out such import/export business in Indiashould know the process, necessity and list of documents needed to apply for IEC. Here, let us proceed further to understand the registration for import and export.

IMPORT EXPORT CODE

An IEC or import export code is an alpha-numeric 10 digit number allotted to a person for undertaking any export/import activities. An application is made to DGFT  online, who issues Importer Exporter Code in electronic form (e-IEC).Earlier IEC issued by DGFT was a unique 10 digit number against the PAN of the applicant in offline mode.

To avoid multiplicity, only one IEC is issued against one PAN. Any proprietor to whom more than one IECs are allotted, the same is to be surrendered to the issuing authority to avoid penal action.Further, in respect of recent amendment, after 31.03.2015, all Multiple IECs against a single PAN stands deactivated suo-motu.

Post GST regime, with a view to maintain the unique identity of an entity (individual/firm/company/LLP etc.), IEC will be equal to PAN and will be issued by DGFT IEC department based on an online application made by the applicant (Trade Notice No. 09/2018 dated 12.06.2017). For existing IEC holders, necessary changes relating to system migration are being carried out by DGFT so that their PAN becomes their IEC. However, no additional exercise will be carried out by existing holders.

NEED/BENEFITS OF IEC

1. To enter into Import and Export transaction: The basic requirement to enter into import export transaction is to have an IEC certificate issued by DGFT.
2. To avail benefits of Government Schemes: It becomes easy to avail benefits of governments schemes available against import and export of goods.
3. Life time validity: Unless cancelled by competent authority, IEC code registration have life time validity.
4. Avoid Illegal trade transactions: All transaction entered through IEC number helps to track and keep record of bonafide transaction and avoid illegal transactions.
5. No return to filled: No burden of filling of quarterly/half yearly/annual returns.
6. No separate registration: No separate registration is required for additional places of business or business activity. Through modification, additional business activity or additional branches/division/factories etc.  wherein business is carried out by the entity can be added to the existing IEC.

WHO CAN APPLY FOR IMPORTER EXPORTER CODE

Any bonafide person (whether resident or not) desirous to enter into import/export transaction shall apply for iec code online. In case of NRI, additional permission from RBI/ individual department in consultation with DIPP (Department of Industrial Policy and Promotion)  is required in some cases.

EXEMPTIONS FOR IEC

Import Export License is compulsory for Import/Export of goods and services. However, there are certain exemption, wherein the party do not require to have iec code online which are as follows:

1. Importers and exporters covered by clause 3(1) of Foreign Trade (Exemption from application of Rules in certain cases) Order, 1993.
2. Departments/Ministries of Central/State Government
3. Import and export of goods for personal use
4. Import/Export of goods from/to Nepal, Myanmar through Indo-Myanmar Border and China, provided the value of one single consignment on CIF basis does not exceed Rs. 25,000/-

Further, exemption from obtaining IEC registration online shall not be applicable for export of Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) as listed in Appendix - 3, Schedule 2 of ITC (HS) except in case of exports by category (ii) above.

Permanent IEC number shall be used by non-commercial PSUs and categories of importers /exporters for import / export purposes.

DOCUMENTS REQUIRED FOR e-IEC

Earlier, there was a long list of documents required for registration for import and export application. However in order to promote ease of doing business in India, this list has been reduced to 3 documents only.For new registration of import export licence, all types of entity are aligned in the same line and need the following details/ documents:

1. PAN of the applicant
2. E-mail ID: A valid email ID of the applicant entity is required wherein OTP will be sent.
3. Mobile No: A valid Mobile number of the applicant entity is required wherein OTP will be sent.
4. Registration fees (iec code fees) of Rs. 500/- (Rupees Five Hundred only) and

Typeof Applicant Documents Required	Proprietor	Firm	LLP	Company	Society	Trust
Digital Photograph [3cm ×3cm] (in GIF)	Proprietor	Managing Partner	Designated Partner	Managing Director/ Director	Secretary/Managing Director	Managing Trustee
Scan Original PAN Card (in GIF)	Proprietor	Firm	LLP	Company	Society	Trust
Original Scan copy of Cancelled cheque with pre printedEntity name & A/C No. (in GIF) OR Bank Certificate as per ANF 2A (I) (in PDF)

In case of modification, alongwith above 3 documents, the following documents are also required:

1. Scanned copy of duly signed application form
2. Modification fees of Rs. 200/- (Rupees Two Hundred only) and

Type of Modification	Document required
Change in address/ Addition of Branch (pdf file)	Any of the following: Latest Electricity bill bearing entity name and address Latest Telephone bill bearing entity name and address Rental/ Lease agreement bearing entity name and address Sale deed (if self owned Premises) bearing entity name and address
Change in Stakeholders (pdf file)	In case of Partners, Partnership deed. In case of Trustees, Trust deed. In case of Directors, DIN and name should match with MCA website In case of Board Members, Bye-Law and election results
Change in Jurisdiction (pdf file)	Registration certificate, for Partnership Firm, Society or Trust Certificate of incorporation, for Company/ LLP
Change in Signatory	Any of the following: Driving Licence (gif/ pdf file) Aadhar card (gif/ pdf file) Voter ID card (gif/ pdf file) Applicant’s Passport (gif file) PAN of the signatory (gif file)
Other documents (pdf file)	Memorandum and Articles of Association of the Company Other document

HOW TO GET IEC CODE:

The online import export registration procedure is:

1. Login to IEC online registration portal using PAN, E-mail and mobile number. The online application can also be made through e-biz portal of DIPP.
2. Fill required information such as Details about the applicant, its branches, it proprietor/partners/directors etc.
3. Make payment of the application fees.Payment must be digitally through online mode i.e. Net banking/ Credit card/ Debit card.
4. Upload necessary documents as elaborated above in gif/pdf form.Further user must ensure that uploaded documents must be clear, legible and in Hindi /English language only. Documents in regional languages needs to be translated in Hindi/ English language and self-certified  translated copy along with original copy is to be uploaded.
5. Submit application using Class 2/3 DSC(Digital Signature Certificate).
6. A key number is generated on successful submission. IEC code status can be tracked through this Key Number.
7. On approval of an e-IEC by the competent authority,  an e-mail is sent to the applicant that a computer generated e-IEC is available on the DGFT website. Applicant can view and print his e-IEC by clicking on “Application Status. 

One can open IEC application any number of times using PAN, Registered Mobile No.and e-Mail ID. It takes around 7-10 days to approve the IEC application. Once IEC is approved, a person can freely enter into import/export transaction. IEC code verification can be done at view your IEC option available at DGFT portal without Logging into Portal.

SYSTEM REQUIREMENT

• Operating System: Windows 7 or new
• Java Runtime Environment (JRE): 1.8 or newer
• Web Browser: Internet Explorer 10 or latest version of Mozilla Firefox/ Chrome/ Microsoft Edge
• Digital Signature: Class 2/ Class 3
• nCodePKIComponent_Setup.exe: Latest version

Before applying, please ensure to make the necessary setting in the browser and Java control panel, for smooth submission of application.

SURRENDER OF IEC

An IEC holder, on suo motto, file an application to the Issuing Authority to surrender his IEC. On receipt of the application, the Issuing authority shall immediately cancel the IEC and electronically transmit it to DGFT and Custom authorities.