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BusinessThe only guide you need to the Import Export...

The only guide you need to the Import Export License

Exporting goods from India to international markets holds immense potential for businesses. Whether you’re a seasoned exporter with years of experience or a newcomer embarking on your international trade journey, understanding the Import Export Licence or Importer Exporter Code (IEC) is vital. Here we will explore the fundamentals of exporting from India and then talk about the specifics of the IEC, covering how to apply for one, how to check its status, and the multitude of benefits it offers to Indian exporters. 

What is an IEC, and why is it essential?

The import-export license, also known as IEC, is a unique 10-digit code issued by the Directorate General of Foreign Trade (DGFT), a department of the Indian government. It is mandatory for anyone who wishes to engage in the import or export of goods and services from India. The IEC is legal proof of your existence as an exporter and is essential for customs clearance, international transactions, and availing various benefits from the government.

How to apply for an IEC?

Applying for an import-export license is a straightforward process. The government has made it easy for Indian exporters to obtain this crucial document. Here are the steps you need to follow:

Visit the DGFT website:

The first step is to visit the official website of the Directorate General of Foreign Trade (DGFT). This is the platform through which you’ll apply for your IEC.

Register on the DGFT portal:

To apply for an IEC, you need to register yourself on the DGFT portal. Click on the ‘New IEC Application’ link, and you’ll be prompted to create an account.

Fill out the IEC application form:

Once registered, you’ll need to fill out the IEC application form. It requires basic information about your business, such as your PAN (Permanent Account Number), the nature of your business, bank account details, and a few other essential details. Make sure to double-check the information for accuracy.

Submit the required documents:

You will also need to submit certain documents along with your application. These typically include a passport-sized photograph, PAN card, and canceled cheque or bank certificate.

Pay the application fee:

After submitting your application and documents, you’ll need to pay the required application fee. The fee is not substantial, and the exact amount may vary, so check the DGFT website for the latest fee structure.

Verification and issuance:

Once your application is complete and the fee is paid, your application will undergo a verification process. If everything is in order, the DGFT will issue your import-export license within a few working days.

Checking your IEC status

After you’ve applied for your IEC, you can easily check its status to know when it has been issued. Here’s how to do it: 

  • Go to the DGFT website
  • Click on ‘IEC’ on the Homepage
  • On the homepage, you’ll find a tab labeled ‘IEC.’ Click on it to proceed.
  • Choose ‘IEC Application Status’:
  • Under the ‘IEC’ tab, you’ll see various options. Choose ‘IEC Application Status’ to check the status of your IEC.
  • Enter Your Application Number
  • You will need to enter your application number and click ‘Submit.’
  • Get Your IEC Status
  • Once you submit your application number, the portal will display your IEC status. If your IEC is issued, you’ll be able to download it from the same page.

Benefits of Having an import-export license 

Now that you know how to obtain an IEC and check its status, let’s explore the manifold benefits that this simple 10-digit code brings to Indian exporters:

Legitimacy:

Having an import-export license lends legitimacy to your business. It’s a government-issued document that proves your authenticity as an exporter. This is crucial for building trust with international partners and government authorities.

Access to export incentives:

With an IEC, you can avail of various export incentives and benefits offered by the government. These incentives can significantly reduce your operational costs and increase your competitiveness in the global market.

Global expansion:

An IEC allows you to explore new international markets and expand your business globally. It opens doors to countless opportunities and potential customers across the world.

Easy customs clearance:

When you have an import-export license, customs clearance becomes a breeze. It facilitates the hassle-free movement of goods across borders, saving you time and resources.

Enhanced credibility:

International buyers often prefer to work with exporters who possess an IEC. It enhances your credibility and makes it easier to establish business relationships with foreign partners.

Enabling e-commerce:

If you’re planning to sell your products online or participate in e-commerce platforms, an IEC is a must. Many e-commerce platforms, like Amazon and eBay, require sellers to have an IEC for cross-border transactions.

Potential for government tenders:

With an IEC, you become eligible to participate in government tenders and contracts related to export-import activities. This opens up a new avenue for revenue generation.

Compliance with regulatory requirements:

An IEC ensures that you are in compliance with the regulatory requirements of the Indian government. This helps you avoid legal hassles and ensures the smooth operation of your business.

A final word

In the world of international trade, the import-export license is your passport to success. Obtaining an IEC is a relatively straightforward process, and it comes with a plethora of benefits for Indian exporters. It not only legitimizes your business but also opens doors to global markets, export incentives, and numerous growth opportunities. So, if you’re looking to thrive in the export-import business, don’t forget to secure your IEC – it’s the key to your global journey. You can also look into programs that support the Indian exporters in terms of business expansion through the global market. One such program is Amazon Global Selling, which can offer you exposure to a huge international customer base over 18 international marketplaces. You can register for it and reap its benefits to expand your import-export business.

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