Import Export Code serves as a license for global trade participation
In 2022, India was number 15 in total exports and 8 in total imports in the world economy. By September 2024, its top exports included petroleum products, drug formulations, pearls, gold, and electric machinery, while its leading imports were petroleum (including crude), gold, electronics components, and coal (Source barrierhttps://oec.world/en). Observatory Economic Complexity (OEC) is a great website with all the trade data that one can use to import/export goods or services. The increasing global connectivity facilitated by technological advancements has created new opportunities in international trade. The government is placing significant emphasis on boosting exports to stimulate GDP growth and strengthen its position in the global market.
To enter international trade, obtaining an Import Export Code (IEC) registration is essential. Issued by India's Directorate General of Foreign Trade (DGFT), the IEC is a unique 10-digit number required for businesses or individuals involved in importing or exporting goods and services. It serves as a license for global trade participation, helping the government track international trade and ensure compliance with regulations.
How To Apply: Getting an IEC is easy. You can apply online through the official government website DGFT. You'll need some basic documents like your business PAN (tax ID), bank details, and business address proof.
here Are SOme Points To Know About IEC Registration:
- No Expiry: Once you get an IEC, it's valid forever.
- No Renewal Fees: You don't need to pay an annual fee. It's a one-time registration.
- Required for Customs and Shipping: To import or export goods and clear customs, you must have an IEC. Without it, you can't legally trade internationally.
- GST registered entity: Consequent to the introduction of GST, the IEC being issued is the same as the PAN of the firm. However, the IEC will still be separately issued by DGFT based on an application.
- Pre-Requisites for Applying for IEC: IEC may be applied on behalf of a firm which may be a Proprietorship, Partnership, LLP, Limited Company, Trust, HUF, or Society. The address of the entity may be physically verified by the DGFT on issuance of the IEC. Please keep your PAN, bank details, and firm details ready before applying
- DGFT Chatbot: It helps exporters/importers/public users instantly with their queries. Users can also connect to Live agents or create tickets in case Chatbot is not trained for their query.
- Updates: Users can see new notifications, trade notices, public notices & circulars on Chatbot.
- ICEGATE Registration: It helps businesses carry out customs-related tasks electronically and facilitates faster customs clearance, with the IEC code serving as a key identifier.
- Digital Signature Certificate (DSC): It is required to complete the online application process on the DGFT portal.
Exemption Of Export Import Code (IEC):
GST-registered exporters: IEC is not required, as GSTIN serves as the IEC for export purposes.
Government departments and PSUs: Exempt from IEC.
Personal shipments: No IEC is needed for personal goods for non-commercial use.
Certain specific goods/services: May be exempt under DGFT or Customs regulations.
Charitable organizations: May be exempt if the trade is non-commercial.