What is the technical requirement to get an IEC?

To obtain an Importer Exporter Code (IEC) in India, you need to fulfill certain technical requirements and provide the necessary documentation. Here are the general technical requirements:

1. PAN (Permanent Account Number): You must have a valid PAN issued by the Income Tax Department of India. The PAN is used as the primary identification for your IEC application.
2. Bank Account: You need to have a current bank account in the name of the applicant entity. The account details must be submitted along with the application.
3. Digital Signature Certificate (DSC): An IEC application requires a Class 2 or Class 3 Digital Signature Certificate (DSC). This is used for online submission of the application and for signing digital documents.
4. Valid Email Address: A valid email address is required for communication and receiving notifications related to the IEC application process.
5. Valid Mobile Number: A mobile number should be provided for verification purposes and for receiving SMS notifications.
6. Business Details: You need to provide accurate and complete details about your business, including name, address, contact information, type of organization (proprietorship, partnership, company, etc.), and other relevant information.
7. Bank Certificate: A bank certificate from the applicant’s bank, on their letterhead, is required as proof of the applicant’s bank account.
8. Cancel Cheque: Pre-printed cheque in the name of the IEC holder.
9. Self-attested Documents: You will need to submit self-attested copies of identity and address proof documents, as well as other documents as required by the DGFT.

It’s important to note that the specific technical requirements and documentation may vary based on the type of applicant (individual, partnership, company, etc.) and any updates to regulations or procedures. Always refer to the official website of the Directorate General of Foreign Trade (DGFT) or consult with their offices for the most accurate and up-to-date information regarding technical requirements for obtaining an IEC or Import Export Code.

Who needs IEC?

Importer Exporter Code (IEC) is required for the following individuals and entities in India:

1. Goods Exporters: Individuals or businesses engaged in the export of physical goods from India to other countries need an IEC. This includes manufacturers, traders, exporters, and merchants.
2. Goods Importers: Individuals or businesses importing goods into India need an IEC to clear customs and facilitate the import process.
3. Service Providers: Individuals or businesses providing services to clients outside of India need an IEC. This includes software companies, IT services, consultancy firms, etc.
4. E-commerce Platforms: E-commerce platforms or online marketplaces that facilitate the export or import of goods also require an IEC.
5. Others: Even if you are not directly involved in import or export activities, obtaining an IEC can be beneficial for various purposes, such as obtaining benefits under export promotion schemes, availing certain exemptions, and participating in government tenders.

What happens if the IEC is not updated/renewed every year between April – June?

If the IEC is not updated/renewed every year between April – June, it will be deactivated. This means that you will not be able to import or export goods using that IEC number. You will need to reactivate the IEC before you can start trading again.

The deadline for updating/renewing the IEC is 30th June of each year. If you miss the deadline, you will need to apply for a late update/renewal. This process can take a few weeks, so it is important to renew your IEC on time.

There are a few exemptions to the IEC renewal requirement. These include:

• Companies that are only importing or exporting goods that are exempt from the IEC requirement.
• Companies that have been granted a waiver from the IEC requirement by the Directorate General of Foreign Trade (DGFT).

If you are unsure whether your company is exempt from the IEC renewal requirement, you should contact the DGFT.

Here are some of the consequences of not updating/renewing your IEC:

• You will not be able to import or export goods using that IEC number.
• You may be subject to penalties by the DGFT.
• You may have difficulty getting trade finance.
• You may lose business opportunities.