Import Export Code
Import and Export code is a 10 digit unique number issued by the Directorate General of Foreign Trade (DGFT) to a business entity for import and export in India. The Import and Export Code helps the business grow in the global market. To clear customs, the trader must ensure that the importing entity has IE code and GST registration before initiating import of goods.
If an importer does not have both IE code and GST Registration, the goods will be stuck at the port and will start incurring demurrage charges or could be destroyed.
Once issued the IE Code is valid throughout the existence of the entity and there is no need to renew the code.
Importance of Import Export Code
International Market Unlocks: As the IE Code is a requirement for the import and the export business they allow the products to reach the international market. IE code makes the entry of the Indian business in the international smoother and opens doors for growth and expansion.
Online Registration: The process to find the IE Code is completely online and hassle-free with little document submission.
Less Document Requirement: To obtain IE Code in India very few documents are required. Here is the list of mandatory documents that are required for obtaining the Import Export Code.
- PAN of the applicant
- Canceled Cheque
- Passport size photo of the applicant
- Address proof of the applicant
Lifetime Validity: IE Code is a lifetime registration that is valid as long as the business is in existence. Hence, there are no issues with updating, filing, and renewing Import Export Code registration. The IE registration is valid till the business is in existence or the registration is not revoked or surrendered.
Reduces Illegal Goods Transportation: The most basic requirement for the Import-Export code is that you need to provide authentic information. Without providing proper information IE code cannot be obtained. This criterion makes transportation of illegal goods impossible.
Benefits of the Schemes: IE code has huge benefits for both importers and exporters. The registered business entities will be able to avail the benefits in form of the subsidies from the Customs, Export Promotion Council or other authorities. With LUT filing under GST, the exporters can make exports without paying the taxes. In case the exports are made with payment of tax the exporter can claim the refunds of the paid tax amount.
Compliance: Unlike other tax registration the person carrying import or export does not require to fulfill any specific compliance requirement such as the annual filing or the return filings.
Documents Required for IE Code Application
Proprietorship | · Digital Photograph (3x3cms) of the Proprietor. · Copy of PAN card of the Proprietor. · Copy of Passport (first & last page)/Voter’s I-Card/ Driving Licence/UID (Aadhar card) (any one of these). · Sale deed in case business premise is self-owned; or Rental/Lease Agreement, in case office is rented/ leased; or latest electricity /telephone bill. · Bank Certificate as per ANF 2A(I)/ Cancelled Cheque bearing preprinted name of applicant and A/C No. |
Partnership firm | · Digital Photograph (3x3cms) of the Managing Partner. · Copy of PAN card of the applicant entity. · Copy of Passport (first & last page)/Voter’s I-Card /UID (Aadhar Card) /Driving Licence/PAN (any one of these) of the Managing Partner signing the application. · Copy of Partnership Deed. · Sale deed in case business premise is self-owned; or Rental/Lease Agreement, in case office is rented/ leased; or latest electricity /telephone bill. · Bank Certificate as per ANF 2A (I)/Cancelled Cheque bearing preprinted name of the applicant entity and A/C No. |
LLP or Private Limited Company or Section 8 Company | · Digital Photograph (3x3cms) of the Designated Partner/Director of the Company signing the application. · Copy of PAN card of the applicant entity. · Copy of Passport (first & last page)/Voter’s I-Card /UID (Aadhar Card) /Driving Licence/ PAN (any one of these) of the Managing Partner/Director signing the application. · Certificate of incorporation as issued by the RoC · Sale deed in case business premise is self-owned; or Rental/Lease Agreement, in case office is rented/ leased; or latest electricity or telephone bill. · Bank Certificate as per ANF 2 A(I)/Cancelled Cheque bearing preprinted name of the company and A/C No. |
Society or Trust | · Digital Photograph (3x3cms) of the signatory applicant/Secretary or Chief Executive. · Copy of PAN card of the applicant entity. · Copy of Passport (first & last page)/Voter’s I-Card /UID (Aadhar Card) /Driving Licence/ PAN (any one of these) of the Secretary or Chief Executive/ Managing Trustee signing the application. · Sale deed in case business premise is self-owned; or Rental/Lease Agreement, in case office is rented/ leased; or latest electricity /telephone bill. · Registration Certificate of the Society / Copy of the Trust Deed · Bank Certificate as per ANF 2A(I)/Cancelled Cheque bearing preprinted name of the Registered Society or Trust and A/C No. |
HUF | · Digital Photograph (3x3cms) of the Karta. · Copy of PAN card of the Karta. · Copy of Passport (first & last page)/Voter’s I-Card/ UID (Aadhar card)/ Driving Licence (any one of these) of the Karta. · Sale deed in case business premise is self-owned or Rental/Lease Agreement, in case office is rented/ leased or latest electricity /telephone bill. · Bank Certificate as per ANF 2A(I)/ Cancelled Cheque bearing preprinted name of applicant and A/C No. |
Procedure for obtaining Import and Export Code
- Exporters/importers shall file an online application in form ANF 2A.
- The applicant is required to submit only two documents one is the address proof and other is the pre-printed cheque or bank certificate
- Once the online application is submitted, along with appropriate fees and requisite documents, IEC will be auto-generated.
- Intimation regarding allotment of IEC will be sent to an applicant via SMS and E-mail along with a hyperlink through which the e-IEC can be downloaded and printed.
- Regional Authority would conduct post-verification of the online IEC as per the guidelines. In case there is any wrong/incomplete information being furnished, the applicant would be liable for penal/criminal action and in such case, IEC would be either suspended or cancelled.
- An e-IEC holder needs to update his profile immediately after issuance of e-IEC.
- ANF-1 of the Handbook of Procedure contains the profile of the importer/ exporter.
- Every IEC holder is responsible for updating its profile, immediately. Further, in case of any change in IEC or in any other case, the profile updating needs to be done at least once in a year.
Importer Exporter Code FAQ’s
1. What is IE Code?
IE Code stands for Import Export Code. It is required for any person importing or exporting goods and services to or from India.
2. What is IE Code?
All importers must mention their IE Code while clearing customs when their goods arrive in India. All exporters must mention their IE Code while exporting their goods from India. Additionally, now RBI requests person importing or exporting services to also mention IE Code in foreign remittances in bank account. Therefore, IE Code is required for anyone involved in import or export in India.
3. Is there a tax levied based on IE Code?
No. IE Code is not a tax registration. So no tax is levied based on IE Code during import or export of goods or services. However, customs duty may be levied.
4. Who must obtain IE code registration?
Any person who proposes to import or export goods and services from or to India must obtain IE Code.
5. Can individuals obtain IE Code?
Yes, individuals acting as Proprietors of a business can obtain IE Code Registration.
6. What documents are required to obtain IE Code registration?
To obtain IE Code registration, a copy of the PAN Card, proof of address of the business, and constitution of the business [Partnership deed, Incorporation Certificate, etc.] and a letter from the banker are required.
7. How long does it take to obtain IE Code registration?
IE Code Registration can be obtained from the DGFT in 10-15 working days after submission of all required documents and applications.
8. What is the penalty for not having an IE Code?
IE Code is not a mandatory registration, only importers and exporters of goods or services must have IE Code. Therefore, there is no penalty for not having IE Code; however, import/export will not be possible without an IE Code.
9. Do I have to file any returns for IE Code?
No. Returns need NOT be filed for IE Code.
10. How long is the IE code valid for?
IE Code is valid for the lifetime of the entity and renewal is also not necessary.
