What is an Import Export Code?

The Import Export Code or the IE Code is a unique 10-digit alpha-numeric code issued by the Directorate General of Foreign Trade (DGFT) and is regulated by the Ministry of Commerce. The code enables Indian Companies to partake in the business of imports and exports.

Through Trade Notice No.9 dated 12.6.2018, the DGFT stated that the PAN of the entity/individual will be the IE Code as well (earlier it was a unique 10-digit number). So, to promote uniformity across all Ministries, the DGFT authorizes the PAN number as the IEC.

For any residuary categories, the IE code will be issued against the UIN (of the GSTN) or any other identification notified by the DGFT.

Who is required to obtain an Import Export Code?

All persons and entities (whether registered or unregistered) are mandatorily required to obtain the Import Export Code authorization if they wish to engage in the business of import and export of goods and services. Even international online marketplaces can apply for an IE Code.

I hold an IEC under the old system, should I apply for another IEC?

No, the necessary changes in the system have been carried out by the DGFT’s system to ensure that the PAN becomes the IEC of all the authorized holders. No additional exercise is required.

Are multiple IE Codes required for Branch Offices?

The Import Export Code has national validity, a single code is sufficient for a single person/entity. Multiple IECs for different branch offices in India is not allowed, and only one IEC can be issued against a single PAN.

Can a person obtain more than one Import Export Code?

No, a person cannot obtain more than one Import Export Code. Only one IEC is issued against a single PAN number. Another IEC against the same PAN card should be surrendered to the Regional Office for cancellation.

Do you need to furnish annual returns after obtaining IEC Code?

Once the Import Export Code is issued, no further procedures, annual fees or legal compliances are required to maintain the validity of the same.

Are there any Tax benefits of obtaining an IEC registration?

Tax benefits under Indirect Taxation laws allow exporters to save the cost of export at a reasonable price. Various schemes like Merchandise Export from India Scheme (MEIS) or Service Export from India Scheme (SEIS) have been introduced by the government, and can only be availed if the IE Code is quoted.

With the implementation of GST, the registered GSTIN will be used for the credit flow of IGST on the import of goods, and for a rebate of IGST in relation to export of goods.

Is it necessary to incorporate a business to obtain IEC Code?

No, it is not necessary to incorporate a business entity to obtain an IEC. Unregistered entities like sole-proprietorship businesses can obtain IE Codes against their PAN Number.

Is there a need to get IEC number renewed?

There is no renewal process for Import Export Code, it has lifetime validity.

Where is IEC number used?

Import Export Code is used by:

• The IEC is quoted on all shipping bills, import bill of lading and customs clearance documents
• Banks will require exporters IE code for receiving remittances from abroad
• The Reserve Bank of India might call for the details of a person/entity’s IEC

Are there any penalties for not obtaining IEC code?

There is no penalty for not obtaining an IEC. However, without an authorized code persons/entities will not be able to import/export goods and services.

How to surrender an IEC Number?

The IEC holder can choose to surrender the code to the issuing authority. The DGFT will communicate cancellation of the IE Code to the Customs and Regional Authorities.

Is there any provision for modification in IEC?

The DGFT allows modification of the IE Code on the submission of certain documents.

Is there an exempted from IEC registration?

IE code authorisation is mandatory for every person or entity who wishes to engage in import or export business in India. However, in some case IEC registration is exempted*:

• If import or export of the goods is not connected to commercial trade, or they are purely for personal use.
• The Government of India is exempted from obtaining an IEC registration for imports and exports.
• Importing or exporting of the goods with maximum CIF value of Rs.25000 per consignment from Nepal or Myanmar particularly through the Indo-Myanmar border.

*Provided such exemption is not applicable in case of export of certain items including special chemicals, organisms, materials, equipment and technologies.