Import Export Code is a fundamental requirement for individuals venturing into the world of import and export businesses in India. Issued by the Director-General of Foreign Trade, an authoritative body under the Government of India, the IEC is a ten-digit, lifelong code. Without this code, importers and exporters face significant limitations.
In essence, the IEC serves as the key that unlocks the doors to international trade. It allows businesses to bring goods into India and take advantage of various export schemes facilitated by the DGFT. To obtain an iec status, the application process involves submission to the Directorate General of Foreign Trade, along with the required supporting documents.
This article will guide you through your IEC application process. Stay informed, ensure a smooth import-export journey, and harness the full potential of your business in the global market.
Table of Contents
Why is iec status required?
Customs Clearance
IEC code is a prerequisite when an importer needs to clear their shipments through customs. It serves as a unique identifier for customs authorities, ensuring that the import process proceeds smoothly and according to regulations.
Banking Transactions
IEC status is not just a formality; it plays a pivotal role in financial transactions involving foreign currency. When an importer sends money abroad through banks, the IEC code is essential. It acts as a necessary documentation to facilitate international financial transfers.
Exporting Goods
For exporters, displaying the IEC code to customs authorities at the port is a mandatory step. This code acts as evidence of compliance with international trade regulations, allowing for the hassle-free export of goods.
Banking Receipts
In the global marketplace, when an exporter receives payments directly into their bank account in foreign currency, the IEC code is indispensable. It ensures that the transaction adheres to international financial standards, enabling smooth receipt of foreign funds.
What Are the Requirements to Apply for an Import-Exporter Code?
Registered Company in India
To apply for an iec status the first requirement is that your business must be a legally registered company in India. This means your company should have completed the necessary legal formalities and documentation to operate as a registered business entity within the country.
Minimum Two Years in Business
The IEC application mandates that your company has a minimum of two years of proven business experience. This requirement demonstrates that your business has been operational for a reasonable duration and has gained practical experience in the import and export industry.
Valid Import or Export License
Alongside being a registered company, you need a valid import or export license issued by the government of India. This license is a legal authorization that grants your business the right to engage in international trade activities, ensuring compliance with government regulations.
ISO 9001:2000 Certification
Holding a valid ISO 9001:2000 certification is a requirement that indicates your commitment to maintaining high-quality standards in your business operations. This certification ensures that your company adheres to internationally recognized quality management principles, showcasing your dedication to quality and professionalism in your import and export endeavors.
How To Check The IEC Application Status?
Access the DGFT Website or ICEGATE Portal
Start by visiting either the DGFT website or the ICEGATE portal. These platforms provide the tools necessary to check your IEC application status.
Locate the IEC Tab or Check IEC/BIN Status Option
Once on the website, locate the ‘IEC’ tab or the ‘Check IEC/BIN Status’ option. This is the gateway to monitoring the progress of your IEC application.
Input Your PAN and Company Name
Enter your PAN number, which serves as a unique identifier, and the first three letters of your company name. These details are essential for accurate tracking.
Choose the IEC Option
From the first section of the form, choose the ‘IEC’ option. This ensures that you’re specifically checking the status of your Import Export Code application.
View Your Application Status
After completing the steps above, you’ll be able to view your IEC application status. It might be labeled as “Received in DGFT” or “IEC application rejected.”
What are the different types of iec status?
NORMAL:
When your iec status is marked as “NORMAL,” it means your IEC is fully operational and can be utilized for import and export activities without any restrictions.
BLACK LISTED
If your IEC status is “BLACK LISTED,” you must immediately contact DGFT for resolution. This status indicates that there might be issues or restrictions associated with your IEC.
SUSPENDED
In case your IEC is marked as “SUSPENDED,” reaching out to DGFT is essential. Suspension implies concerns or limitations related to your IEC, and you should address them promptly.
CANCELLED
If your IEC status shows “CANCELLED,” it is imperative to contact DGFT for clarification and resolution. A canceled status may have arisen due to various reasons, and DGFT can guide you through the next steps.
CLEAR FROM BLACK LIST
If your IEC was previously “BLACK LISTED” but has now been cleared, you need to transmit the IEC from DGFT with a 00 error code. This ensures that your IEC is back in operational mode.
REVOKE SUSPENSION
When your IEC is “SUSPENDED,” you can take action to revoke the suspension, restoring your IEC to active status for import and export activities.
REVOKE CANCELLATION:
If your IEC was previously “CANCELLED,” you can initiate the process to revoke the cancellation. Once successfully revoked, your IEC can be used again for international trade.
AMENDMENT:
When changes or amendments are made to your IEC, you can continue to use it. This status signifies that modifications have been implemented, and your IEC is updated accordingly.
How to get iec status smoothly?
Name Choice for Application
You have the flexibility to use either your company’s name or your own name when applying for IEC. This choice allows you to align the IEC with your business structure.
Digital Signature Certificate
While a Digital Signature Certificate is not mandatory for IEC application, it has been introduced to enhance the IEC issuance and modification processes. You can opt for either DSC or Aadhar authentication to sign the IEC application form, providing convenience and security.
Streamlined IEC Allotment
Once ICEGATE accepts all your documents, an IEC is auto-generated. The Directorate General of Foreign Trade will promptly notify you of the IEC allotment through SMS and email. They will also provide a hyperlink for you to download and print your e-IEC, ensuring a swift and efficient process.
Summary – Monitoring your IEC status is vital for a seamless global trade experience. Amazon’s Global Selling platform recognizes the importance of a valid IEC, offering a vast opportunity for businesses to thrive internationally. Stay informed and leverage your IEC status to unlock the full potential of global markets here.