Key Features of Import & Export License

• Legal Compliance: Ensures that the business adheres to the regulatory framework governing international trade.
• Trade Facilitation: Facilitates the import and export of goods by providing official permission to engage in international trade.
• Regulatory Oversight: Subject to periodic audits and compliance checks by regulatory authorities to ensure adherence to trade laws.
• Unique Identification: Provides a unique Importer Exporter Code (IEC) number, which is essential for customs clearance and international transactions.

3. Advantages of Import & Export License

• Legal Authorization: Provides legal authorization to import and export goods, ensuring compliance with international trade laws and regulations.
• Access to Global Markets: Enables businesses to access global markets, expanding their reach and increasing growth opportunities.
• Customs Clearance: Facilitates smoother customs clearance by providing the necessary documentation and identification for international shipments.
• Financial Benefits: Access to various government incentives, subsidies, and financial schemes available for exporters.
• Market Credibility: Enhances credibility and trust with international clients and partners by demonstrating compliance with trade regulations.

4. Disadvantages of Import & Export License

• Compliance Requirements: Requires adherence to specific regulations and periodic updates, which can be administratively burdensome.
• Cost: There may be costs associated with obtaining and renewing the license, as well as compliance-related expenses.
• Documentation: Requires meticulous documentation and record-keeping, which can be time-consuming.

Validity of Import Export Code

The validity of an IEC is for a lifetime. This means that once an IEC is obtained, it is valid for all import or export transactions of the entity. There is no need to renew or update the IEC after a certain period.

Nature of the Firm Obtaining an IEC Code

IEC can be obtained by any individual, company, partnership firm, Limited Liability Partnership (LLP), or any other type of entity engaged in import or export activities. Whether you are an exporter or importer, having an IEC is mandatory for all such transactions. Even if a business is not actively engaged in import or export activities, but it plans to do so in the future, it still needs to obtain an IEC beforehand.

Prerequisites for Applying IEC Code

To apply for IEC, the following prerequisites are required:

• A valid Permanent Account Number (PAN) card issued by the Income Tax Department of India is mandatory 
• The applicant must have a bank account in the name of the firm or individual, as IEC is issued in the name of the applicant
• The business entity should be registered under the Registrar of Companies (ROC) 
• The applicant needs to submit the relevant documents such as identity proof, address proof, and details of the business entity to the DGFT office.

Documents Required for Import Export Code Registration

The documents required for an IEC License registration are listed below.

• PAN card of the company (not applicable in case of the proprietor) 
• Applicant’s PAN and Aadhaar card (driving license/Aadhaar/voter ID) 
• Incorporation certificate/partnership deed 
• Address proof (electricity bill/rent agreement/Sale Deed of the office location) 
• Copy of cancelled cheque leaf/banker certificate of the current account in the name of the company.

5. Steps to Obtain Import & Export License

• Step 1: Determine Eligibility
  • Eligibility Criteria: Ensure that your business meets the eligibility criteria for obtaining an Import & Export License. Generally, any legal entity or individual involved in international trade can apply.
  • Documents Required: Gather necessary documents, including the business’s PAN card, address proof, bank details, and company registration documents.
• Step 2: Apply for Importer Exporter Code (IEC)
  • Visit DGFT Portal: Access the DGFT online portal at DGFT Portal.
  • Create an Account: Register on the portal using your mobile number and email address.
• Step 3: Complete the Online Application
  • Application Form: Fill out the IEC application form with details such as the business name, address, PAN, and bank account information.
  • Attach Documents: Upload the required documents, including identity proof, address proof, and any other supporting documents.
• Step 4: Submit the Application
  • Form Submission: Submit the completed application online through the DGFT portal.
  • Fee Payment: Pay the applicable processing fee. The fee amount may vary based on the type of license and business category.
• Step 5: Verification and Approval
  • Application Review: The DGFT will review the submitted application and documents. Any discrepancies or additional information required will be communicated.
  • Approval Process: Upon successful verification, the IEC will be issued. The process typically takes a few weeks, but may vary.
• Step 6: Obtain and Use the License
  • IEC Number Issuance: Once approved, an Importer Exporter Code (IEC) number will be issued. This number must be used in all import and export transactions.
  • Certificate: Download and print the IEC certificate for your records and include it in your trade documentation.
• Step 7: Renew Registration (if applicable)
  • Renewal Process: While the IEC is usually valid for a lifetime, ensure to review and update registration details as needed to reflect any changes in business operations or address.

Documents required for IEC Code registration

The list of scanned documents required for IEC Registration and obtaining an IEC certificate is listed as follows:

• Proof of establishment/incorporation/registration: The following type of Firm needs to submit the establishment/incorporation/registration certificate:
• Partnership
• Registered Society
• Trust
• HUF
• Other
• Proof of Address: Proof of Address can be any one of the following documents:
• Sale Deed
• Rent agreement
• Lease deed
• Electricity bill
• Telephone landline bill
• Mobile, post-paid bill
• MoU
• Partnership deed
• Other acceptable documents (for proprietorship only):
• Aadhar card
• Passport
• Voter id

Note: In case the address proof is not in the Name of the applicant firm, a no objection certificate (NOC) by the firm premises owner in favour of the Firm, along with the address proof, is to be submitted as a single PDF document.

• Proof of Firm’s Bank Account
• Cancelled Cheque
• Bank Certificate
• User should have an active DSC or Aadhaar of the Firm’s member for submission.
• Active Firm’s Bank accounts for entering its details in the Application and making online payment of the application fee.

Benefits of IEC Registration

1. Enables International Trade

IEC Registration is important for businesses interested in foreign trade, allowing people to tap into the global market, improving and growing the company standard. It is the key paper necessary for starting foreign deals, and without it, no one can act in the import/export business. The IEC code is proof that the business has followed the rules set by the DGFT, which makes it possible for import and export activities to go easily.

2. Avail Various Benefits from the Government

IEC registration offers various benefits from the government, including lifetime validity, keeping of business links, improvement of business quality, and access to government schemes. The IEC number is not needed to be changed, and businesses can receive a return of taxes paid while sending goods. The IEC number is also important for keeping track of and recording all of a company’s operations that join in foreign trade activities.

3. Expand Your Business Globally

IEC registration assists organisations in developing their company overseas, enhancing the quality of business and creating confidence in the international market. The IEC code is the most crucial document for any business that works with imports and exports, and it is required for every type of company, including proprietorship firms, partnership firms, limited liability partnerships, limited corporations, trusts, Hindu undivided families, and societies.

4. Establish Credibility in the International Market

IEC registration helps build trust in the foreign market, giving an official witness and proof that the business has met the rules of the DGFT. It is a necessary condition for companies interested in foreign trade, allowing smooth import and export operations and improving and growing business standards. The IEC code is the main record necessary for starting foreign deals, and without it, no one can act in the import/export business.