India has been exporting goods to the rest of the world for centuries now. India imports many goods from all over the globe as well making it one of the most functional and growing markets for imports & exports all over the world. There is a constant rise in the goods made in India in the global market. India is a market leader when it comes to the export of electronic goods, jewelry & engineered goods. Businesses of different types like limited liability partnerships, proprietorship firms, private limited companies, partnerships, and Hindu undivided families are all eligible to conduct imports & exports. One very important document for the importers and exporters of India is the Import Export Code.
With so many businesses indulging in international trade, it is important for the government of India to have some documentation processes in place to be able to track these businesses. The documentation also helps the government stay updated on developments in international trade and regulate it as and when required. There are also many norms for importers and exporters, the government also needs documentation to manage compliance with these norms.
This blog will focus on how to get an IEC code, how to check IEC status, and the importance of an IEC code, etc. Let’s dive into it real quick!
What is IEC?
IEC is a mandatory document required for importers and exporters to be able to trade internationally. IEC can only be issued by the Directorate General of Foreign Trade (DGFT) which can be applied for online on the DGFT website. Once you have successfully submitted all the required documents for the application, you can check the IEC status digitally.
IEC Status | Definition
When a business applies for an IEC online, the application is reviewed by DGFT. Only when the application of IEC is verified by DGFT, it is provided to the business. To track the updates on the IEC application process, the DGFT website has the option of checking the IEC status. The main purpose of offering the application process online along with the facility to check the IEC status digitally is the encouragement of paperless documentation. It is very easy to get your updates on IEC with the amount of digital services available. There are two ways you can track IEC status online:
1. IEC reaching ICEGATE location: You can check this status simply with the submission of IEC and filling in the captcha as per what they see on their screen
2. IEC registration at DGFT headquarters: This is to check whether or not the IEC check is complete, which is based on PAN card
How to register for IEC?
If you are looking to get your Import Export code to start an export e-commerce business the process is very easy. Since Goods & Services Tax (GST) was implemented, issuing an IEC is the same as issuing a PAN card for a business. It is mandatory to verify your PAN card details for obtaining an IEC, you can check your IEC status online to know the update on your PAN verification. Let’s have a look at the process of applying for IEC:
1. Firstly, you have to visit the online portal of DGFT
2. Secondly, you have to go to the services section, where you have to go to the IEC portfolio and then select the Apply for IEC option
3. Thereafter you need to Register as a user
4. You need to fill in the required information in the form ANF 2A (IEC)
5. Then you need to submit the required documents and then generate OTP
6. Pay the government fees for IEC
7. The Adhar verification & digital signatures are next
8. At last, you need to download the IEC certificate
What are the documents required for IEC registration?
The export-import business is reaching great heights all over the world. In the financial 2023, it is expected to cross a total of one trillion. This is the best time to start exporting if you haven’t until now. But before you start it is important you get IEC registration done from DGFT. For this, you need all your documentation in place. Do not forget to keep checking your IEC status to stay updated on your registration process. Let us look at what you need to make it possible:
Registration on the online portal of DGFT
When you register on the DGFT portal you need to fill in the following details:
- Your full name
- Your mobile number
- That email address of yours
- State, city, and district of you
After these details are filled, you need to go for an OTP verification and after that, your online account on DGFT is all set.
The most crucial document in obtaining IEC is the PAN card. The Income Tax Department of India verifies the PAN card against the details of your business and without this, your IEC registration cannot be completed.
Scanned Documents Needed
The following documents are needed for IEC registration:
1. The proof of registration of business (this differs as per the type of business)
2. Address proof of your business (this can be an electricity bill, rent agreement, sale deed, MoU, or partnership deed, etc.)
3. Proof of bank account, which can be a bank certificate or a canceled cheque
Once the documentation is done, you need to submit the digital signature of the proprietor or partner of the firm.
After you are done completing the documentation you will have to keep checking the IEC status online to know whether or not your IEC registration is complete.
All these documentation and processes can sound overwhelming but they are a necessary procedure. There are many other formalities and paperwork when you want to start an export business. With a supportive platform like Amazon Global Selling, all of these processes and more can be highly streamlined. With the help of this platform, Indian exporters can get exposed to a global market of 200+ countries. Starting and expanding an export business has never been as easy as this.