Basically, the IEC code is an ID of 10 digits issued by the Indian Ministry of Commerce, Director-General of Foreign Trade to Indian companies. It is a mandatory requirement for importers and exporters to have an IEC number in order to conduct import and export activities. As a result, no one or entity can import or export without an IEC number. This article will explain how to obtain an IEC number in detail.
Import-export codes: what do they mean?
Since the advent of globalization and the free-market, India has emerged as the largest trading hub in south Asia. It is becoming increasingly common for companies in search of cheaper alternatives to engage in the import-export business across international borders. In order to facilitate the import-export business, the government has developed the concept of an import-export code, or IEC, as it is known generally. A 10-digit identification number is assigned to all companies that engage in imports and exports in order to track their activities.
In order to obtain an IEC number, you must meet certain criteria
A part of the Foreign Trade (Regulation) Rules, 1993 governs the entire process of import and export in India. Therefore, IEC falls under the same statute. There are very limited circumstances when IEC is required when import/export is of services or technologies, i.e. when import/export is of ‘specified services’ or ‘specified technologies’. In order to protect national security, the Government of India restricts international trade in certain services and technologies, such as nuclear weapons, automatic guns, etc. Under the following circumstances, IEC is not required:
- Goods imported or exported for personal use, unrelated to trade, manufacturing, or agriculture.
- Some notified charitable organizations and government ministries import and export.
Can you tell me how to obtain an IEC number?
For a company, it is the Registered office, and for others, it is the Head Office, which makes the IEC application with the local Regional Authority of the Directorate General Foreign Trade (DGFT).
In order to apply for the program, the applicant must submit the required forms along with the filled-out ‘Aayaat Niryaat Form – ANF2A’.
The Regional Office will cancel any IECs issued to a proprietor if there are more than one IEC allotted to the proprietor.
In accordance with the provisions, a single IEC can be issued for a single PAN number. A proprietor may surrender more than one IEC if he or she has more than one assigned to him or her.
IEC code documentation requirements:
- Details of your current account
- PAN card
- Certificate of Banking
- Two passport-sized photographs
- To be delivered by registered mail, a self-addressed envelope is required
What is the online application process for IEC?
Download the ANF2A application form in PDF or Word format from the website to apply for an Import/Export code online. The bank authority needs to attest Appendix 18B along with two passport-sized photos if you are applying. As indicated in the given format, an IEC number is valid for all branches, divisions, units, and factories of an applicant.
The IEC application fee for the form is Rs. 250/-. In case you are applying online or offline, you can pay using DDs or TR6 challans. Otherwise, you can submit the TR6 Challan along with the IEC Code application. The applicant must submit the TR6 Challan along with the IEC Code application.
You can fill out the export import code registration from the DGFT website. You must complete the IEC application without any mistakes and sign it. A rejected application has a high risk of being rejected by an authority. Manual applications should be submitted in Word format, if possible.
How do you replace an IEC number if you lose it?
A duplicate copy of your IEC number may be granted by the issuing authority if accompanied by an affidavit if you lose or misplace your number.
Do you want to get rid of your IEC number?
Upon receiving an IEC number, one can legally surrender the number by informing the issuing authority if they do not wish to use it. When such an intimation is received, it will be cancelled immediately by the issuing authority and transmitted electronically to the DGFT for distribution to the Customs and Regional Authorities.