After liberalization in 1991, the Indian markets were opened to international investment. Indian enterprises were also permitted to invest in other nations in addition to these prospects and can conduct import and export operations as well. By adopting the Import Export Code License registration in India, the Government of India, Ministry of Commerce, and Director General of Foreign Trade (DGFT) made it easy for businesses.

Any business entity can take advantage of the Government of India’s benefits by getting Import Export code registration. Apart from that, adhering to the IEC code license requirements allows for greater opportunity variety. It is required to obtain Import Export license certificate before going abroad. There are a variety of benefits that come with pursuing this Import Export License registration.

Import Export Code license is abbreviated as IEC. This accreditation is required by any school or business that wishes to expand its opportunities. This accreditation is required for any individual, partnership, or business conducting import and export activities in India.

The Director General of Foreign Trade (DGFT) issues this certification. It is a ten-digit number that proves the company’s ability to import and export goods. The applicant must first apply for an IEC code registration procedure.

Import Export License Certificate has a lifetime validity. Meaning, the applicant will not need to go through the IEC code registration renewal process. IEC code registration procedure would normally take a month to secure. Any business entity that does not meet the import export code registration process requirements will not be permitted to carry out import export operations.

REGULATORY BODY FOR IMPORT EXPORT LICENSE CERTIFICATE REGISTRATION

The Director General of Foreign Trade is the primary regulating authority for IEC code license registration. The IEC is governed by the Government of India, the Ministry of Commerce, and the DGFT. For an IEC code license registration, separate application must be submitted to the DGFT. The official website of DGFT offers an online version of the registration system.

Proprietorship Firm

An individual who is involved in the import and export procedure must obtain Import Export License Certificate.

Partnership Firm

A partnership firm is required to have an IEC code license number if it is exporting and importing products.

Limited Liability Partnership

In the business of trading outside India, every partnership created under the limited liability partnership act of 2008 would be required to obtain this certification

Private Limited Company

If a Private Limited company is engaged in transporting items or goods outside the country, it must obtain IEC code license under the Companies Act of 2013 or a previous company statute.

Hindu Undivided Family

This type of certification is also required for carrying out imports and exports by any Hindu Undivided Family where the individuals are made up of a Karta and Sole members.

Society

To carry out import export activity, any society founded under the Co-operative society or society’s registration act will need this IEC license number.

EXEMPTION FROM THE IEC CODE REGISTRATION

A business must have an Import Export Code license number in order to import any type of goods. The following individuals, however, are exempted from getting an IEC Code registration:
1- For personal import or export, IEC registration is not required.
2- Individuals who intend to export or import products to or from Myanmar and Nepal via China and the Indo-Myanmar fringe zones in one transaction with a value of less than INR 25,000 do not need IEC code license registration number.
3- Import Export license registration would not be necessary for specialised chemicals such as SCOMET (Scientific Chemicals, Organisms, Material, Apparatus, and Technologies), as defined in Appendix – 3, Schedule 2 of the ITC (HS).

The following situations necessitate IEC code registration process:
1) Necessary for APEDA registration.
2) Exporting shipments to other countries.
3) This number is essential if the exporter receives any type of subsidy.
4) IEC code registration is necessary for Food Licensing and FSSAI registration.
5) For obtaining clearance from Customs’ Department officials for the importer's shipments.
6) Import Export Code number is required while sending money abroad through a licensed bank.
7) Import Export Code license number is required by the bank when the exporter receives inward remittance.

For different business entities, here are the list IEC code registration documents required for the process:

1. Sole Proprietorship

1) Customer satisfaction and customer attention
2) People’s involvement in leadership
3) Process based Approach
4) A methodical management strategy
5) Continual development
6) Approach to decision-making that is based on facts
7) Supplier relationship that benefits both parties

2. Partnership Firm

For Partnership Firm, following documents are required for IEC code license registration procedure:
– Applicant’s digital photos (nine).
– Copy of the Partnership Deed
– PAN Card
– The applicant’s unique identification, voter identification, passport, and driver’s license.
– If the company is privately owned, a sale deed must be presented.
– For rented property: A copy of lease agreement is required.
– ANF 2A bank certificate is required.

3. Limited Liability Partnership (LLP) and Private Limited Company

For LLP & Private Limited Company, here is the Import Export Code registration process documents requirement:
– (3*3) Photographs of the Applicant
– Copy of your PAN card.
– The applicant’s unique identification, voter identification, passport, and driver’s license.
– If the company is privately owned, a sale deed must be presented.
– For rented property: A copy of lease agreement is required.
– ANF 2A bank certificate is required.

4. Trust

For Trust, following import export code license registration documents are required.
– The Trust’s Certificate of Registration.
– A copy of Trust Deed.
– (3*3) Applicant’s Digital Photos (Managing Trustee).
– Copy of your PAN card.
– The applicant’s unique identification, voter identification, passport, and driver’s license.
– If the company is privately owned, a sale deed must be presented.
– A Copy of Lease agreement is required if the property is rented.
– ANF 2A bank certificate is required.

5. Hindu Undivided Family (HUF)

– (3*3) Digital Photographs of the Applicant, i.e. the HUF Karta.
– The Karta’s PAN Card.
– The applicant’s unique identification, voter identification, passport, and driving license (Karta).
– If the company is privately owned, a sale deed must be presented.
– A Copy of Lease agreement is required if the property is rented.
– ANF 2A bank certificate is required.

Bank Proof

As a Bank Proof, a cancelled cheque without a pre-printed name of the account holder will not be accepted, as per Trade Notice No. 39/2018-19 issued on December 12, 2018. The pre-printed cheque can be for a savings account or a current account.

For carrying out successful IEC Code registration process, it must be noted that the above-mentioned papers needs to be uploaded online in digital format (GIF, JPEG) with a maximum file size of 5MB.

Hence, any application for Import Export Code Certification would be required to present the above papers.