Guide to the IEC Registration Process to Start Export Business
When you are part of the international business world, you must follow guidelines to ensure you meet all the criteria. In this article, we will provide detailed information related to IEC. Let’s start by looking at what IEC means.
What is IEC (Importer-Exporter Code) registration?
IEC or Importer-Exporter Code registration consists of 10 digits, a unique identification number issued by the Ministry of Commerce, Directorate General of Foreign Trade, Government of India. Since it involves international payments, it is mandatory for individuals or companies involved in the export or import of goods and services to have this code.
Once obtained, the IEC is valid for the lifetime of the individual or entity that applied for and obtained it.
Why is IEC required?
1. You need to register and obtain an IEC code to conduct an import or export business
2. The IEC can also be used as your business identity is akin to business PAN in banking
3. IEC comes into play for the clearance of goods at customs when you submit cross-border documents for compliance
4. You will be required to have IEC to get export-related incentives from the government
5. Banks or financial institutions require IEC to process payments from abroad
What is the process to apply for IEC registration?
You can apply for an IEC online via the DGFT website. To start the IEC registration process, go to the section on the homepage that says ‘Register for your IEC.' There’s a helpful section right below that provides you with information about IEC FAQs to clarify any doubts you may have. If you want more information or feedback, create a ticket in the Helpdesk Service on the DGFT site.
You will find the ‘Apply for IEC’ button when you click on the next section. This will take you to a form asking you to log in or register as a user. You can register as a user by looking at the drop-down menu for the right option. The next few fields cover basics like name, email ID, mobile number, area PIN code, district, state, city, and the captcha code. You have to accept the terms and conditions, after which you will get an OTP to complete the formalities.
Also Read: Importance of FIRC for Indian exporters
Once you complete the IEC registration process and fill out the application, you must attach documents like a PAN card, identity proof, address proof, and a canceled cheque. Once you have all the documents and the completed application, you must pay the fee and submit the application.
How much time does it take to get the IEC?
The process of verifying all the details and issuing the IEC has been streamlined recently to speed up the process, which should typically take 2-7 business days after the submission process is over. To ensure speedy processing, take the time to review all the required details and ensure that all documents are in good condition while submitting the application.
Typically, the IEC will be sent to the registered email of the applicant.
Are there any formalities after completing the IEC registration process?
Yes, you have to link the IEC with other export-related systems and registrations to ensure that you are able to operate your business with ease, meet all compliance requirements, and ensure that you get all related benefits.
1. Link with GSTIN
There are some benefits that will be due to you under the GST regime, like the Input Tax Credit (ITC) and to meet GST regulations on import and export businesses. To complete the linkage, include IEC details along with GST registration details on the GST portal.
2. Link with DGFT
Most of the promotion schemes and incentives under export will be under DGFT, which will need these details to provide access to these benefits. Make sure you update all business details and IEC in DGFT e-portal.
3. Link with customer authorities
You will need to update IEC details with the customs to ensure clearance processes and ensure smooth import-export transactions. You need to update IEC with Indian Custom Electronic Data Interchange (EDI) system through the ICEGATE portal.
4. Link with PAN and Aadhar
To validate the identity of your business to ensure compliance and streamline government processes, you will need to link PAN and Aadhar with IEC details. You will need to link the authorized signatory’s Aadhar with IEC through the DGFT portal. Link the PAN card of the entity to IEC during the application process.
5. Link with Export Promotion Council
You will need to update the Export Promotion Council with IEC details to ensure that your business gets all the due benefits.
As a cross-border payment platform, LeRemitt hopes you find all the information provided about the IEC registration process useful. Please get in touch with us for other related information.
