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.
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. (Image: freepik)
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.
HereтАЩs how a business looking to export or import goods can apply for the IEC:
- Visit dgft.gov.in and under the тАШServicesтАЩ tab click on IEC Profile Management┬а
- Click on тАШApply for IECтАЩ under тАШProcesses in IECтАЩ. Register yourself as an тАШImporter/ExporterтАЩ under the тАШRegisterтАЩ tab and then log in to your account┬а
- Click on тАШApply IECтАЩ and then click on тАШStart Fresh ApplicationтАЩ. If a previous application is saved as a draft, click on тАШProceed with Existing ApplicationтАЩ┬а
- The IEC form has six tabs тАУ General Information, Details of Proprietor/Partner/Director/Karta /Managing Trustee, Bank Information, Other Details (Preferred Sectors of Operations), Declaration, and Application Summary┬а
- 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┬а
- Confirm and proceed to make payment. The site will redirect to the payment gateway┬а
- Post payment, the page will redirect to the DGFT website displaying the payment receipt available for download┬а
- The IEC certificate is likely to be received by the company in its email. The same can be downloaded from the DGFT website┬а
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.
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