If you are planning to start an import/export business or expand your existing business internationally, getting your IEC code quickly and without spending too much money is essential. In this guide, we will discuss everything you need to know about IEC Code registration and share valuable tips to get your IEC Registration done quickly and affordably.
What is the IEC Code?
IEC (Import Export Code) is a mandatory registration number given by DGFT to Indian businesses or individuals involved in international trade. This code helps the government track import and export activities and allows the business to get benefits like:
- Opening a current account with banks for foreign trade
- Claiming export incentives from the government
- Clearing shipments at customs
- Filing export and import documents
Why is IEC Code Important?
- Legal Requirement: It is illegal to import or export goods or services without IEC code.
- Financial Benefits: IEC holders can avail benefits like duty drawback, export promotion schemes, etc.
- Banking and Customs: Without IEC, banks won't process foreign exchange transactions for imports or exports, and customs won't clear your shipments.
- Ease of Trade: IEC simplifies the import-export process and builds credibility for your business.
Who Needs IEC Code?
- Sole proprietors, partnerships, companies, or any other entities engaged in import or export.
- Importers of goods or services
- Exporters of goods or services
- Service providers engaged in international services
Documents Required for IEC Code Registration
To register for IEC, you need the following documents:
- PAN Card of the applicant or company
- Proof of Address (Electricity bill, rent agreement, telephone bill, etc.)
- Bank details including cancelled cheque or bank certificate
- Photograph of the applicant (for individuals)
- Business Registration Proof (if applicable, like partnership deed, company incorporation certificate)
Step-by-Step Process of IEC Registration
- Visit the IEC Portal – Open the official IEC registration website on your browser.
- Fill in the Application Form – Enter your business name, type, PAN number, and other required details carefully.
- Submit the Application – Review all the details to ensure accuracy before submitting the form.
- Pay the Registration Fee – Make the payment online using net banking, credit/debit card, or UPI.
- OTP Verification – Enter the OTP sent to your registered mobile number or email for authentication.
- Processing & Approval – The concerned authority will verify your details and process the application.
- Receive Your IEC Code – Once approved, the IEC code will be sent to your registered email within 1-2 business days.
Tips for Affordable IEC Registration
- Do It Yourself: The easiest way to save money is to apply for IEC code yourself online. The process is simple, and the fee is only Rs. 500. Avoid middlemen or agents who charge extra fees.
- Use Official DGFT Website: Always use the official DGFT website for application to avoid scams or overcharging.
- Prepare Documents Properly: Double-check that your documents are clear, correct, and properly scanned before uploading. Incorrect or blurry documents may delay your application or cause rejection, costing you time and money.
- Avoid Extra Services: Some websites offer “fast-track” IEC services or additional consultation for high fees. Remember, the government’s processing time is quite fast by itself. Avoid paying unnecessary amounts.
- Use Digital Signatures Wisely: For IEC registration, digital signatures are usually not mandatory. Don’t buy expensive digital signature certificates just for IEC unless required for other exports/import-related licenses.
- Keep Bank Account Ready: Make sure you have a current bank account for business or a personal bank account in the company’s name with net banking facility. This makes the fee payment and verification process smooth.
- Seek Help from Local Chambers of Commerce: Sometimes local Chambers of Commerce offer free or low-cost IEC registration help or guidance. Check with your local business associations.
Tips for Quick IEC Registration
- Apply Online with All Documents: Incomplete applications cause delays. Upload all required documents properly in the right format. Use PDF or JPEG as recommended.
- Avoid Peak Hours: Try applying during non-peak internet usage hours to avoid website slowdown or errors.
- Check Your Email Regularly: DGFT often sends updates or queries via email. Respond quickly if they ask for clarification.
- Keep PAN and Bank Details Handy: IEC verification depends on PAN and bank details. Make sure these are correct and linked properly.
- Use Reliable Internet Connection: A stable internet connection helps avoid interruption or loss of data while filling the online form.
- Apply Early in the Day: Applications submitted early in the day might get processed quicker than late submissions.
- Avoid Multiple Applications: Don’t apply multiple times for the same IEC. If you already applied, wait for the status update.
Common Mistakes to Avoid During IEC Registration
- Wrong PAN Details: Entering incorrect PAN details will lead to rejection. Always cross-check before submitting.
- Wrong Address Proof: Address proof must be valid and current.
- Poor Document Quality: Blurry or unreadable documents slow down processing.
- Wrong Bank Details: Ensure bank details match the ones you provide and the account is active.
- Multiple Applications: Don’t apply more than once for the same IEC; it causes confusion and delays.
- Not Checking Email: Ignoring DGFT emails asking for clarifications will cause rejection.
What to Do After Getting an IEC Code?
- Use IEC for Customs Clearance: Give your IEC code to the customs department during shipment clearance.
- Open Foreign Trade Account: Open a current account in your company’s name with a bank that supports foreign exchange.
- Claim Export Benefits: Use your IEC code to claim government export incentives and subsidies.
- Use IEC in All Import-Export Documents: Mention your IEC code on all export/import invoices, shipping bills, and customs documents.
- Keep Your IEC Updated: If your address or business details change, update your IEC details with DGFT.
When Do You Need to Update or Modify IEC?
- Change of business address
- Change in bank account details
- Change in PAN details (if applicable)
- Change in the name of the business
Suggested read: Secrets to Profitable Import-Export Trading
Conclusion
Getting an IEC code is simple, affordable, and fast if you follow the right steps and avoid common mistakes. Here are the key takeaways:
- Apply directly through the official DGFT website.
- Keep all documents ready, clear, and accurate.
- Use a stable internet connection and submit a complete application.
- Check your email regularly for DGFT communications.
- After receiving the IEC, use it properly for your import/export business.
By following these tips, you can get your IEC code without delays and extra costs, saving time and money, and start your import-export journey smoothly.