Introduction
An Importer Exporter Code (IEC) is a key business registration / identification number which is mandatory for export from India or import to India. No export or import shall be made by any person without obtaining an IEC unless specifically exempted. For services exports however, IEC shall be not be necessary except when the service provider is taking benefits under the Foreign Trade Policy.
IEC will be issued by the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry of Government of India.
Consequent upon introduction of GST, IEC being issued is the same as the PAN of the firm. However, the IEC will still be separately issued by DGFT based on an application. The nature of the firm obtaining an IEC may be any of the followings – Proprietorship, Partnership, LLP, Private Limited, Limited Company, Trust, HUF and Society.
Pre-Requisites for Applying for IEC
IEC may be applied on behalf of a firm which may be a Proprietorship, Partnership, LLP, Private Limited, Limited Company, Trust, HUF and Society. Firm must have a valid DGFT login credentials, PAN, bank account in the name of the firm and a valid address before applying.
Advantages
- It is inevitable to have an international business presence.
- It is inevitable to avail various benefits under Foreign Trade Policy – FTP.
- No compliance requirements other than annual IEC update, which is compulsory now.
- Life time validity.
- Simple and easy documentation.
Checklist of documents
- PAN (PAN must be operative) copy of the authorised signatory / director/s.
- Aadhaar copy of the authorised signatory / director/s.
- Driving license or voter ID copy of the authorised signatory / director/s.
- DIN of all the director/s.
- Email ID, Cell phone number and addresses of the authorised signatory / director/s.
- Passport size photo of the authorised signatory / director/s.
- Email ID of the firm to get OTPs.
- Cell phone number of the firm to get OTPs.
- PAN (PAN must be operative) copy of the firm.
- Registered office address with PIN.
- Sale deed / valid rental agreement along with NOC from the landlord.
- Latest electricity bill copy.
- Latest municipal tax paid receipt.
- Cancelled cheque copy of the firm.
- Partnership deed, Trust deed, LLP deed, Incorporation certificate, MOA and AOA (Other than proprietorship concerns).
- GST registration certificate.
- Valid DSC.
- Aadhaar authorisation (In case of proprietorship concerns).
- Business registration certificate (i.e., Udyam / Shop and establishment registration certificate, etc.).
- Type of business constitution, branch details, business activity and SEZ entity confirmation.
Annual Update of IEC
Updating the Importer Exporter Code (IEC) annually is must. The designated period for the update falls between April and June each year, corresponding to the financial year. The final due date is 30th June corresponding to the financial year.
Consequences of non-updating of IEC
As mentioned earlier IEC should be updated on or before 30th June corresponding to the financial year.
In case of noncompliance, your IEC will be deactivated. Upon deactivation, you are prohibited from import and export business, except it is specially exempted by IEC requirement.
Deactivated IEC number should be reactivated by updating the IEC.
We tried our level best to explain the basics of IEC registration and its updating in general. Please do make sure to update your IEC on time to avoid any future consequences. Would like to explore more, please stay tuned to us https://www.ganashri.com
About Ganashri
At Ganashri, we help to build the nation by giving the quality services to our clients on time every time. Ganashri Tax Accounting is an Accounting Firm based out of Bangalore, India. Ganashri started its operations in June 2018. Our business sustainability is depending upon the triple bottom line, i.e., Planet, People and Profit.
Thank you for your time.
Ganashri Advisers India LLP | +91 94801 18310 | https://www.ganashri.com | cg@ganashri.com |
Disclaimer
This document has been issued in the general interest of knowledge transfer purpose and it cannot be construed in any other manner whatsoever.