In the past decade or so, India has witnessed a boom in its Small and Medium Enterprises (SMEs) sector. But let’s face it, even companies such as Google and Amazon started off as small companies before they became the billion-dollar giants they are today.

The SMEs in India, too, realize this, and business owners are aware that to stay ahead of the curve, they need to expand their business beyond the domestic market. However, establishing your business and building it into a global brand is no easy task and there are several procedures to follow before you dive into the deep end of the ocean.

One of the procedures is acquiring an Import-Export Code, popularly known as IEC for services that you offer.

What is IEC Code?

The IEC Code is used by individuals or companies that are looking to establish an import-export business. Issued by the Director-General of Foreign Trade (DGFT), the IEC Code for Export of Services, as well as its import, is a 10-digit code that is valid for life. If you do not have an IEC Code, then you cannot import or export goods. 

Do We Need an IEC for Export Services?

Simple answer, yes you do. Without an IEC code, merchants will be unable to export goods and services to other countries. The IEC Code is required by the Customs Port in case a merchant is exporting goods and services. You will also require an IEC Code as an exporter in case you receive money in foreign currency directly into your bank account.

GET IMPORT-EXPORT CODE

How Do You Register an IEC Code for Exporters and Importers?

You are required to follow the necessary step to register an IEC Code for exporters and importers:

• You need to prepare an application form i.e.e Aayaat Niryaat Form 2A format and file it with the respective DGFT.
• Along with the form, you will be required to submit all identity documents such as your PAN Card\Passport\Aadhaar Card, etc, your proof of address Aadhaar Card\Voter ID\Passport, along with your bank details.
• Once you complete your application process, you need to file it with the DGFT using a digital signature certificate and pay the necessary fee to register for the IEC.
• Once your application is approved, you will receive a soft copy of the IEC Code from the government. 

FAQs

What is an IEC Code?

An IEC Code, which is also the short form for Import Export Code, is a code required by an individual or business involved in imports and exports in India.

Is an IEC Code Required in All Import-export Circumstances?

There are a few terms and conditions where an IEC Code is not required for the export and import of goods and services. These include:

• An IEC Code is not required for export or import for goods used for personal use are sent and received i.e. these goods aren’t connected with trade, manufacture, or agriculture
• In case the government or government ministries and departments, and certain notified charitable organizations are involved in the export or import of goods, then an IEC Code is not required.

Who has to Get an IEC Code?

Any individual or company involved in the export and import of goods and services in India must get an IEC Code.

What are the Documents Required to Get an IEC Code?

In order to get an IEC Code, you are required to submit a self-attested copy of your PAN Card. Moreover, the proof of address of the business, the constitution of the business. Additionally, a letter of authority from the bank where your business has an account.

How Long Does it Take Before I Get an IEC Code?

It takes anything between three to seven working days before you get the IEC Code. However, do note that this is only after all your documentation is in order. And your registration for the code is approved. 

Will I Get Penalized for not Having an IEC Code?

No. You won’t be levied a penalty, but you cannot import or export goods and services without an IEC Code.

Do I Have to File Anything After I Get an IEC Code?

The IEC Code is just a 10-digit code. That you are required to show to successfully import and export goods and services. You do not require to file transactions under this code. Nor will you be required to pay additional tax for having this code.

For how Long is an IEC Code Valid?

An IEC Code is valid for life and doesn’t require to be renewed.