IEC- EXPORT IMPORT LICENSE

An Import Export Code (IEC) is a 10-digit identification number issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India. It is mandatory for any individual or entity involved in importing or exporting goods and services from India, unless specifically exempted. Why an IEC is required The IEC is essential for conducting international business and provides several key benefits: Customs clearance: It is mandatory for clearing shipments with customs authorities for both imports and exports. Foreign transactions: Banks require the IEC to process and facilitate international payments for imports and exports. Government schemes: An IEC is required to avail benefits under various export promotion schemes offered by the DGFT and other government agencies. Business expansion: It allows businesses to expand their reach into global markets and increases their credibility with international partners Eligibility and exemptions Any individual, sole proprietorship, partnership, limited liability partnership (LLP), company, trust, or Hindu Undivided Family (HUF) can apply for an IEC. Certain categories are exempt from requiring an IEC: Individuals: Not required for goods imported or exported for personal use, which are not intended for trade, manufacturing, or agriculture. Government bodies: Ministries and departments of the Central and State Governments are exempt. GST registered traders: For GST-registered traders, their Permanent Account Number (PAN) is treated as their IEC. How to apply for an IEC How to apply for an IEC The application process is fully online and can be completed on the DGFT website. Register on the DGFT portal using your PAN, email, and mobile number. Log in and select the "Apply for IEC" option under "IEC Profile Management". Fill out the application form (ANF-2A) with details about your business and bank account. Upload the necessary documents, which include your PAN card, address proof, and a cancelled cheque. Pay the required application fee online. Submit the application. Once approved, the IEC certificate is auto-generated and sent to you via email. Validity and annual update An IEC has lifetime validity, meaning it does not need to be renewed periodically. However, it is mandatory to update and confirm the details of the IEC electronically every year between April and June. If the annual update is not completed within the specified period, the IEC will be deactivated, preventing any further import or export transactions. A deactivated IEC can be reactivated online through a successful