Obtaining an Importer-Exporter Code (IEC) is essential for businesses that wish to engage in international trade, whether selling products abroad or sourcing them from other countries. While selecting the right market among the 195 countries India trades with and making decisions on pricing, sampling, managing payment risks, packaging, export insurance, shipping, and invoicing, having an IEC issued by the Directorate General of Foreign Trade (DGFT) officially enables business to operate internationally.
The 10-character alpha-numeric IEC is necessary on the date of rendering services and is obtained separately by DGFT based on an online application. An IEC is the same as the Permanent Account Number (PAN) of the company, given that it is unique to every company and individual.
Here’s how a business looking to export or import goods can apply for the 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
Importantly, the commerce ministry has imposed an interest subvention cap of Rs 5 crore per IEC (import-export code) for MSME manufacturers till September 30, 2024, for the current fiscal. Moreover, earlier this month, DGFT had announced the extension of IES for pre and post-shipment rupee export credit for a month till September 30 for MSME manufacturing exporters.