Understanding the Import Export License Registration in India

In India, the Ministry of Commerce and Industry's Directorate General of Foreign Trade (DGFT) assigns each importer and exporter a 10-digit number known as the Importer Exporter Code (IEC). The IEC is required for any business in the country that wants to buy or export goods. Getting the right licenses and permissions is a very important step for businesses in India that do foreign trade. In this article, we will learn several steps to get an import-export license and the IEC renewal process in India.

Import Export License Registration in India

Here is an overview of the import and export license registration process:

1. Obtaining an Importer Exporter Code (IEC)

The first step in the import-export license registration process is to obtain an Importer Exporter Code (IEC). The IEC is a unique 10-digit code issued by the DGFT and is mandatory for any business involved in import or export activities in India. To obtain an IEC, businesses need to submit an application to the DGFT along with the required documents, such as identity and address proof, bank details, and photographs. The IEC remains valid for the lifetime of the business entity.

2. Registration with DGFT

After obtaining the IEC, businesses may need to register with the DGFT through an online portal called the DGFT Trade Portal. Registration on the portal involves providing details about the business entity, such as the name, address, constitution (proprietary, partnership, or company), and contact information. Once registered, businesses can access various online services provided by the DGFT, including applying for import and export licenses.

3. Import License Registration

To import specific goods into India, businesses may need to obtain an import license or a specific license. The requirement for an import license depends on the nature of the goods being imported and the policies and regulations in place at the time. The application for an import license needs to be submitted to the DGFT along with supporting documents, such as the proforma invoice, purchase order,import-export code , and other relevant documents. The DGFT reviews the application and grants the import license if all requirements are met.

4. Export License Registration

For certain goods or products, businesses may require an export license or a specific license to export them from India. The need for an export license depends on factors such as the nature of the goods, their destination, and the regulations in force. Businesses need to submit an application to the DGFT for obtaining an export license, along with supporting documents such as the proforma invoice, purchase order, export-import code, and other relevant documents. The DGFT reviews the application and grants the export license if all requirements are satisfied.

5. Compliance and Renewal

Once businesses obtain the import or export license, they must ensure compliance with the conditions and restrictions mentioned in the license. It is important to adhere to import-export policies, follow customs procedures, and maintain accurate records of imports and exports. Import and export licenses in India may have an expiration date, and businesses need to renew them periodically to continue their import-export activities.

IEC Code Renewal Process in India

The IEC remains valid for the lifetime of the business entity and does not require renewal. However, there are certain instances where businesses may need to modify or update their existing IEC. Here is an overview of the IEC code renewal or modification process:

IEC Details Modification

If there are any changes or updates to the details mentioned in the existing IEC, businesses need to modify their IEC accordingly. This includes changes in the name of the firm, address, constitution, directors/partners, bank details, or any other relevant information. The modification application needs to be submitted to the concerned regional DGFT office along with supporting documents that validate the changes being made. The DGFT reviews the application, and upon verification, updates the IEC details accordingly.

The Takeaway-

Import and export license registration in India involves obtaining an IEC, registering with the DGFT, applying for import and export licenses, ensuring compliance, and renewing licenses as required. It is worth mentioning that the IEC code renewal itself is not required, but the businesses engaged in import-export activities must comply with other regulatory requirements and licenses, such as specific import or export licenses, if applicable.