Import/Export Licence (IEC Certificate)

Introduction

In today’s competitive global market, every business aims to expand beyond domestic boundaries. To begin any import or export activity in India, obtaining an IEC licence is mandatory. IEC stands for Import Export Code.

Many new businesses are unaware of the importance of IEC. This 10-digit code, issued by the Directorate General of Foreign Trade (DGFT), allows companies to import goods, export products, and avail various government benefits. Without an IEC, a manufacturer cannot legally import goods or enjoy export incentives under DGFT schemes. IEC is valid for a lifetime once issued.

Advantages of IEC Registration

Global Reach: IEC enables businesses to enter international markets and expand globally.
Government Benefits: Eligible entities can avail incentives from DGFT, EPCs, and customs.
Quick Process: IEC registration is simple and usually completed within 10–15 working days.
No Renewal Needed: IEC is valid for the lifetime of the business.
Universal Usage: The same IEC can be used for all import/export transactions of the entity.

Situations Where IEC is Required

IEC is mandatory for commercial import and export activities. It is required when:

An importer needs to clear goods through customs.
An importer sends money abroad for import payments.
An exporter ships goods outside India through a customs port.
An exporter receives foreign currency in their bank account.

Situations Where IEC is Not Required

IEC is not needed in the following situations:

GST-registered traders where PAN is treated as the IEC.
Import/export of goods for personal use (non-commercial).
Government ministries, departments, and notified charitable organizations.

Registration Procedures & Document Requirements

Registration Procedure

Application Preparation: Fill out the ANF-2A (Aayaat Niryaat Form) and submit it to the DGFT regional office.
Attach Required Documents: Identity proof, entity details, address proof, and bank information.
Digital Submission: Submit the application online using a Digital Signature Certificate (DSC) and pay the fee.
Receive IEC Certificate: After verification, DGFT issues the IEC certificate electronically.

Document Requirements

Cancelled cheque of the current bank account.
PAN card of the individual or business entity.
Voter ID, Aadhaar Card, or Passport of the applicant.
Address proof such as electricity bill, rent agreement, or property documents.
Self-addressed envelope (if physical copy requested).

What Presto Laboratories Offers

Presto Laboratories Pvt. Ltd. is a trusted organisation known for delivering reliable and professional compliance services. Our experienced team assists businesses in navigating DGFT licensing procedures with ease and accuracy.

We ensure businesses stay updated with the latest DGFT regulations and maintain seamless compliance for import-export activities.

Our DGFT Liaisoning Services Include:

Industrial & IEM License Approvals
Import Export Code (IEC) Registration
Export Obligation Period (EOP) Extensions
Advance License & EPCG License Support
Other DGFT-related permissions and renewals

At Presto, our goal is to make regulatory compliance simple and worry-free. With our expert assistance, your business can expand globally with confidence and meet all legal obligations efficiently.

Frequently Asked Questions (FAQ)

1. What is an IEC?

Import/Export Code (IEC) is a special 10-digit identification code that is issued by DGFT. It is the official registration of your cross-border transactions of your company.

2. Should there be an IEC license in foreign trade?

yes. Any person, partnership, firm, or LLP intending to import or to export goods or to receive funds in a foreign country would need to obtain an IEC.

3. What is the role of IEC in facilitating international trade?

Such a certificate enables traders to clear customs, receive payment from overseas customers, and benefit importation and exportation incentives.

4. Can it obtain a license from the IEC in order to do personal shipments?

The applicant need not be a registered business in order to apply to an IEC. This provision also needs that the import/export is done on commercial or trading purposes, and not on consumption purposes.

5. What are the fees for an IEC license?

You can contact us anytime to know the fee, in case you are interested in taking this license.

6. Is the IEC required to be renewed on an annual basis?

No update required. CEI is valid for life. Any changes in the name of the company, owner, address, or bank account information should, however, be made immediately on the DGFT portal.

7. Is it possible to have more than one IEC for several branches or offices?

Yes, one IEC can be applied by the manufacturers in a number of branches or offices.

8. What happens if the owner of the CEI fails to update the changes in the data?

In the event that the details of the company are not updated, the IEC can be turned off temporarily by DGFT, until it is corrected. This information should be updated because this could be relevant to customs clearance and remittances.

9. Does it need to be imported with samples or prototypes by IEC?

yes. Any company that imports such samples to conduct a test, research and development, or demonstrations are required to possess a valid IEC certificate even when the goods are not of commercial value.

10. What can Presto Laboratories do to help with the process of getting or updating an IEC?

The Presto Laboratories include the full assistance package, such as the preparation of documentation, the possibility to submit the application online, the DGFT submission, the error correction, and updating the old IECs. Our group ensures that there are no delays or errors in the process.