Unique Selling Proposition (USP) of Import Export Code (IEC) License

An Import Export Code (IEC) is a mandatory 10-digit registration issued by the Director General of Foreign Trade (DGFT), required for any entity or individual engaging in import or export activities from India. It carries lifetime validity and is essential for conducting cross-border trade.

 

Why is the IEC License Necessary?

For Importers: IEC is mandatory for customs clearance of imported goods and for remitting payments abroad through banks.

For Exporters: Customs authorities require an IEC for shipping goods out of the country. Additionally, banks request it when foreign currency payments are received in India. Without an IEC, no entity or individual is legally allowed to carry out import/export activities in India.

 

Benefits of Having an IEC License

1. Global Market Access:  IEC enables businesses to enter international markets and expand globally.
2. Government Incentives: Eligible for various schemes, benefits, and subsidies from DGFT, Export Promotion Councils, and Customs.
3. No Compliance Burden: There is no requirement to file returns or renew the IEC—once issued, it remains valid for a lifetime.
4. Quick Processing: IEC can be obtained online within 10–15 working days after application and payment.
5. Tax Refund Eligibility: Businesses can claim refunds on taxes paid during exports.
6. Improves Credibility & Business Standards: Helps build international credibility and enhances trade transparency.
7. Eliminates Illegal Trade: The application requires valid, verifiable details—preventing fraudulent or illegal business practices.
8. Primary Document for International Trade: Acts as the first legal requirement to begin any global trade activity.

 

About IEC License

Issued under Chapter III of the Foreign Trade (Development & Regulation) Act, 1992

Applicable to individuals, partnerships, LLPs, private/public companies, and other entities

Valid for a lifetime—no renewals required

Application is processed online via DGFT with minimal documentation

Eligibility Criteria for IEC License

1. Any bonafide individual or business entity can apply for IEC
2. Not required for government departments, ministries, or notified charitable organizations
3. One IEC per PAN card—multiple IECs against the same PAN are not permitted
4. IEC may not be required for import/export of technology and services under certain condition.

Registration Process for IEC License

1. Prepare the Application: Visit the official DGFT website and fill out the IEC application form online.
2. Verify & Submit: Double-check all details and digitally sign the self-declaration before submission.
3. Make the Payment: Pay the government fee of ₹500 via the portal.
4. Track Application Status: The status can be tracked online. The certificate is typically issued within a few working days.

 

Documents Required for IEC License Application

1. PAN Card (individual/firm/company)
2. Aadhaar Card / Voter ID / Passport (for identity proof)
3. Cancelled Cheque (of a current bank account in the entity’s or individual’s name)
4. Address Proof (rent agreement or electricity bill)
5. Self-addressed envelope (for certificate delivery via registered post, if required)