The Importer-Exporter Code (IEC) is a business identification number that is mandatory for Exports or Imports. No person shall make any import or export except through an IEC Number granted by the DGFT. In the case of import or export of services or technology, the IEC requirement is when the service or technology provider takes benefits under the Foreign Trade Policy or deals with specified services or technologies.

The firm, obtaining an IEC, can be a Proprietorship, or Partnership, or LLP, or a Limited Company, or Trust, or HUF, or Society. 

Validity of IEC

IEC registration is permanent registration that is valid for a lifetime. Therefore, there will be no annoyances for updating, filing, and renewal of IEC registration. It is valid till the business survives or the registration is revoked or surrendered. Moreover, the importer or exporter does not need to file any filings or abide by any other compliance requirements like annual filing.

As IEC registration is done only once and needs no additional compliance, it is recommended for all companies and LLPs to obtain IEC after incorporation.

IEC Exemption

An Import Export Code is necessary for the import of any type of goods by a business. However, the following category of persons are exempt from obtaining an IEC:

• Importer and export by central Government or agencies or undertakings for defense purpose or other specified lists under Foreign Trade (exemption from the application of Rules in some cases) Order, 1993.
• Import or Export of Goods for personal use.

Applying for IEC

Para 2.08 of the Handbook of Procedure contains provisions concerning the application for IEC. Vide public notice no. 27/2015-2020 dated 8th August 2018, the said para underwent an amendment, and the provisions of the amended para as applicable concerning the application for IEC is hereunder –

• Exporters/importers must file an online application in form ANF 2A.
• The applicant must submit only two documents; one is the address proof, and the other is the pre-printed cheque or bank certificate.

Address Proof

• Sale deed, if the business premises is self-owned; or
• Rental/lease agreement in case the premise gets rented/leased; or
• Latest electricity/landline/ mobile bill in the applicant's name; or
• GST registration certificate; or
• In the case of a proprietorship, the following proof is valid –
• Aadhar card;
• Voters ID;
• Passport.

Import Export Code Issuance

Once submission of the online application and appropriate fees and requisite documents takes place, IEC is auto-generated. Communication regarding allotment of IEC is delivered to an applicant via SMS and E-mail, along with a hyperlink by which the e-IEC can be downloaded and printed. The IEC certificate will only be provided digitally and is downloadable from the link provided. An e-IEC holder needs to update his profile immediately after the issuance of e-IEC. If any change to the IEC details arises, the profile needs updating at least once a year, as per para 2.15 of the Handbook of Procedure, 2015-2020.

The Regional Authority would conduct post-verification of the online IEC according to the guidelines. If there is any wrong/incomplete information, the applicant would be liable for penal/criminal activity, and in such case, IEC would be either suspended or canceled.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.