Starting export business? Here’s how step-by-step you can get your export license online

Trade, import and export for MSMEs: An IEC is a 10-character alpha-numeric number allotted to an entity looking to export or import of goods. For the export of services or technology, IEC is necessary on the date of rendering services.

Written by MSME Desk

April 12, 2023 19:05 IST

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IEC is the license to start and export or import business in the country.

Trade, import and export for MSMEs: Getting an Importer-Exporter Code (IEC) (import-export license) is mandatory for businesses looking to sell goods abroad or purchase them from abroad. Hence, while you choose the right market for your business among around 195 countries India trades along with deciding on pricing and sampling, understanding payment risks, packaging, export insurance, shipping invoicing, etc., an IEC allotted to your business by the Directorate General of Foreign Trade (DGFT) will technically make you eligible to go international.

What is IEC?

An IEC is a 10-character alpha-numeric number allotted to an entity looking to export or import of goods. For the export of services or technology, IEC is necessary on the date of rendering services. An IEC is the same as the Permanent Account Number (PAN) of the company, given that it is unique to every company and individual.

However, IEC has to be obtained separately by DGFT based on an online application. In case of changes in details provided by the company in the IEC, it has to update the changes digitally every year between April and June. In the absence of any change, the same has to be confirmed online.

Also read: MSME ministry invites tender to study export issues faced by MSMEs

What are the documents required to export from India?

PAN details, proof of business registration, address proof, cancelled cheque, and bank certificate. For the bank certificate, the promoter should have an active Digital Signature Certificate (DSC) or Aadhaar of the firm’s member for submission. Also, the firm’s bank account is required for entering its details in the application and to make online payment of the application fee.

How much is the application fee?

The application fee for IEC is Rs 500.

How to apply for an IEC?

Visit dgft.gov.in and under the ‘Services’ tab click on IEC Profile Management
Click on ‘Apply for IEC’ under ‘Processes in IEC’. Register yourself as an ‘Importer/Exporter’ under the ‘Register’ tab and then log in to your account
Click on ‘Apply IEC’ and then click on ‘Start Fresh Application’. If a previous application is saved as a draft, click on ‘Proceed with Existing Application’
The IEC form has six tabs – General Information, Details of Proprietor/Partner/Director/Karta /Managing Trustee, Bank Information, Other Details (Preferred Sectors of Operations), Declaration, and Application Summary
Fill out all the tabs which are quite self-explanatory. Towards the end, check the Application Summary and click on the Sign button to sign the application using the Aadhaar e-sign and DSC
Confirm and proceed to make payment. The site will redirect to the payment gateway
Post payment, the page will redirect to the DGFT website displaying the payment receipt available for download
The IEC certificate is likely to be received by the company in its email. The same can be downloaded from the DGFT website

How much time does it take to issue a new IEC?

After online application, according to DGFT, the average time to receive an IEC is immediate.

Also read: Explained: What makes for a great export market for first-time exporters

What is the validity period for IEC?

An IEC carries lifetime validity. There is no need to re-apply for it annually.

Will the IEC be deactivated if not updated annually?

Yes, the IEC holder will have to ensure that the details in its IEC are updated electronically every year and in case there are no changes, the same should also be confirmed online.

How can a promoter add his/her another firm to an IEC?

Another firm can be added as a branch in case the promoter has multiple firms with the same PAN details but the firm names are different. The name has to be added in the field ‘Address line 1’ while filling in the branch details.