🔍 Overview of Import Export License in India
The Import Export License in India, officially known as the Importer Exporter Code (IEC), is a 10-digit number issued by the DGFT under the Foreign Trade (Development and Regulation) Act, 1992. It is mandatory for businesses and individuals engaged in import and export of goods or services. Without IEC, customs clearance and international transactions cannot be processed.
🏛️ Issuing Authority in India
The Import Export Code (IEC) is a 10-digit identification number issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India.
🙋♂️ Who Need Import Export License?
An Import Export License (IEC) is mandatory for any individual, business, or organization involved in international trade. Companies that import goods into India or export goods and services abroad under the Foreign Trade (Development and Regulation) Act, 1992. Freelancers and service providers who receive foreign payments also require an IEC to comply with banking and customs regulations.
💼 Documents Required for Import Export Code
Common documents include:
Proprietorship
1) Photo of the Proprietor.
2) PAN Card of Proprietor.
3) Aadhar Card of Proprietor.
4) Office address proof, Electricity Bill and Property Tax Receipt.
5) Bank Certificate /Cancelled Cheque.
6) Any Licence of Business.
Partnership
1) Photo of the Partners.
2) PAN Card of Firm & Partners.
3) Aadhar Card of Partners.
4) Office address proof, Electricity Bill and Property Tax Receipt.
5) Bank Certificate /Cancelled Cheque.
6) Any Licence of Business.
Public Limited/ Private Limited
1) Photo of the Directors.
2) PAN card of Company & Directors
3) Aadhar Card of Directors
4) Office address proof, Electricity Bill and Property Tax Receipt.
5) Bank Certificate /Cancelled Cheque.
6) Certificate of Incorporation.
It is also recommended to ensure that all the documents submitted are accurate and complete to avoid delays in the processing of the IEC application.
🛠️ Procedure For Import Export License in India
A Step By Step Guide For Import Export Code Registration as follows:
- Visit the DGFT website.
- Click on the ‘Services’ tab on the homepage.
- Enter Individual or Company PAN Information
- Enter your Mobile number to get OTP
- Fill the Application Details
- Add Branch Details if any
- Fill the Individual or Partner’s or Director’s details
- Upload the documents Scan copy
- Pay the application fee for IEC Rs.500/-
- Submit the application
- Receive the IEC: After the application is processed and approved by the DGFT, the IEC is issued and sent to the applicant through email or post.
It is important to note that the procedure for obtaining an IEC may vary depending on the type of business and the goods to be imported or exported. It is advisable to seek expert advice and assistance to ensure compliance with all applicable regulations and laws.
How Long It Takes to Get a Import Export License in India
An Import Export License (IEC) in India is issued by the DGFT within 1–2 working days after online application, document submission, and fee payment. The IEC is delivered in digital form (e-IEC) and is mandatory under the Foreign Trade (Development and Regulation) Act, 1992 for international trade.
🚀 Benefits of Import Export License in India
There are several benefits of obtaining an Import Export Code (IEC) in India, including:
- Access to Global Markets
- Easy Processing of Customs Clearance
- An IEC ensures legal obligation compliance to importers and exporters.
- IEC Certificate valid for lifetime
- No renewal needed for Import Export Code
- After obtaining an IEC Code, you are not required to file any returns.
- Benefits Under the Merchandise Export from India Scheme (MEIS)
- Benefits Underthe Service Export from India Scheme (SEIS)
- IEC Code updates are simple to do online.
Overall, obtaining an IEC in India provides numerous benefits to businesses engaged in international trade. It facilitates easy access to global markets, participation in government schemes, and compliance with all relevant regulations and laws.
Government Fees for Import Export License in India
The government fee for an Import Export License (IEC) in India is just ₹500, payable online at the DGFT portal. Once the application form is submitted with required documents and payment, the IEC is issued digitally within 1–2 working days under the Foreign Trade (Development and Regulation) Act, 1992.
Validity and Renewal for IEC
- Generally valid for 1 year.
- Must be renewed annually before expiry
⚖️ Penalties for Non-Compliance
Non-compliance with Import Export License (IEC) regulations under the Foreign Trade (Development and Regulation) Act, 1992 can lead to serious penalties. The DGFT may suspend or cancel the IEC, restrict foreign trade benefits, and impose monetary fines. In severe cases, customs may seize goods, and legal action may be initiated.
Frequently Asked Questions
What is an Import Export Code (IEC)? +
An Import Export Code (IEC) is a 10-digit code that is issued by the Directorate General of Foreign Trade (DGFT) to businesses or individuals that are involved in the import and export of goods and services from India.
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What is the fees for import export code registration? +
The cost of obtaining an IEC is Rs. 500, which can be paid online through the DGFT website.
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How long does it take to obtain an IEC? +
The processing time for an IEC application is usually 2-3 working days after the submission of the application and required documents.
What is the validity of an IEC? +
IEC holders are required to update/confirm their IEC details online every year (between April to June), even if there are no changes.
Who can apply for an IEC? +
Any individual or business with a PAN (Permanent Account Number) and a bank account in India can apply for an IEC.
Who needs an IEC? +
Any individual or business that wants to engage in import or export of goods or services from India needs to have an IEC. This includes exporters, importers, manufacturers, and traders.
How to get import export license? +
An application for an IEC can be submitted online through the DGFT website. The application requires certain documents, such as PAN card, Aadhaar card or passport, bank account details, and business details.
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Is it mandatory to have an IEC for export of services? +
Yes, an IEC is mandatory for the export of services from India. Service providers are required to obtain an IEC and declare their code while filing for the Service Export from India Scheme (SEIS) benefits.
What are the benefits of having an IEC? +
Having an IEC enables businesses to engage in international trade legally and to access global markets. It also makes businesses eligible for government schemes, simplifies the customs clearance process, and makes them eligible for subsidies and incentives offered by the government of India.
Is it necessary to obtain a separate IEC for each branch of a business? +
No, a single IEC can be used for all branches of a business across India. However, separate IECs are required for businesses with multiple business entities.
