Step-by-Step IEC Registration Process

The Export Promotion Council offers valuable guidance, ensuring that businesses navigate the online process efficiently and successfully secure their IEC license. The Import Export Code (IEC) registration process in India is simple and fully online. Here are the steps to get your IEC:

Step 1: Online Application on DGFT Website

• Overview of the DGFT e-Governance Platform: The DGFT website is where you apply for your IEC. Visit https://dgft.gov.in.
• How to Create a User Profile: You need to create a user profile by entering your PAN number and business details. After that, you’ll receive login details.
• Navigating the IEC Online Application Form: Once logged in, fill in the necessary details like your personal information, contact details, and bank account information.

Step 2: Uploading Required Documents

• Guidelines for Document Submission: Upload documents like your PAN card, address proof, bank certificate, and a Digital Signature Certificate (DSC) if needed.
• Importance of Accurate Document Upload: Ensure all documents are correct; inaccurate uploads can cause delays or rejections.

Step 3: Payment of Application Fees

• IEC Code Registration Fee: The registration fee is minimal. Refer to the latest structure on the DGFT website.
• Mode of Payment: You can pay via net banking, debit, or credit card.

Step 4: Verification and Approval by DGFT

• Verification Process: The DGFT checks your application and verifies your PAN and address.
• Common Reasons for Rejection: Incomplete or incorrect documents are the main causes of rejection.

Step 5: Issuance of IEC Certificate

• Download IEC Certificate: Once approved, download your IEC certificate from the DGFT portal.
• Validity and Renewal: IEC is valid for a lifetime, but annual renewal/updation is required as per DGFT rules.

Once obtained, the IEC number allows businesses to carry out import/export activities. However, businesses must comply with ongoing requirements, including return filing and maintaining communication with customs authorities.

Post-Registration Compliance and Obligations

Besides the registration process, businesses must comply with certain post-registration requirements. One of these is Return Filing, which involves submitting necessary returns to the DGFT. This is a repeatable requirement, and failure to comply can affect the validity of the IEC and your business operations. After obtaining your IEC, here are some key compliance points to remember:

Updating IEC Details

When and How to Update IEC Information

• If your business information has changed, you must update your IEC accordingly.
• Login to the DGFT portal using your credentials and select "Update IEC."
• Updates may include changes in business address, bank details, or business activities.
• Failure to update IEC details can result in deactivation of your code.
• DGFT requires periodic updates, especially between April and June of every year.

Compliance with Foreign Trade Policy

To comply with India's Foreign Trade Policy (FTP), businesses must meet specific obligations to avoid penalties and ensure smooth international trade operations.

Annual Filing Requirements

• Export and import businesses under FTP 2023 are required to file Annual Returns.
• Filing annual returns allows businesses to access benefits such as Advance Authorization or EPCG schemes.
• If Annual Returns are not filed, the IEC will be deactivated.

Record Keeping and Reporting Obligations

• Businesses must maintain accurate and up-to-date records of all trade activities.
• Compliance with customs regulations, export controls, and tariff rules is mandatory.
• Proper record keeping helps prevent legal disputes or penalties related to trade violations and anti-bribery laws.

Cancellation or Surrender of IEC

Businesses can cancel or surrender their IEC if they decide to discontinue import or export operations.

Conditions Under Which IEC Can Be Canceled

• IEC can be canceled if the business chooses to stop import/export activities.
• It can also be canceled due to violations of trade regulations.
• Once deactivated or canceled, trade activities cannot be conducted until reactivation.

Procedure for Surrendering IEC

• Login to the DGFT website and navigate to the "IEC Profile Management" section under the Services tab.
• Select the "Surrender of IEC" option.
• After surrendering, the IEC will be canceled for future dealings.
• The business may apply for reactivation if needed in the future.