As a small business owner or a large corporation, going into global trade is the first step to a whole new world of opportunities. But in order to legally export or import goods and services, one needs a compulsory document: the Import Export Code (IEC). This article explores who needs an IEC, its importance, and how it fits into your broader financial management strategy.

1. Who Needs an Import Export Code? A Step-
by-Step Guide to IEC Registration
With economies today being globalised, businesses are no longer limited to the
domestic market. As a small business owner or a large corporation, going into global
trade is the first step to a whole new world of opportunities. But in order to legally export
or import goods and services, one needs a compulsory document: the Import Export
Code (IEC). This article explores who needs an IEC, its importance, and how it fits into
your broader financial management strategy.
What is an Import Export Code (IEC)?
An Import Export Code (IEC) is a 10-digit unique number allotted by the Directorate
General of Foreign Trade (DGFT) of India. It is required by any individual or business
entity dealing in the import or export of goods and services. The IEC number is an
essential document for customs clearance and needs to be submitted in all foreign trade
transactions.

2. The IEC code is a lifetime registration, and hence, it does not need renewal but remains
valid for an entire lifetime unless it is surrendered or cancelled. Be it importing raw
materials for your manufacturing unit or exporting finished goods to overseas markets,
the IEC is your key to international trade.
Who Requires an Import Export Code?
1. Companies Dealing in Import/Export Operations
If your organisation is importing or exporting goods from around the world, you should
have an IEC registration. This is mandatory for traders, service providers, and
manufacturers. The customs department won't clear your shipment without an IEC.
Your business functions will be locked for an indefinite period.
2. E-commerce Exporters
Now that online marketplaces such as Amazon, eBay, and Alibaba are available, most
small businesses and individuals sell their products worldwide. Even though you are a
small business trader in these marketplaces, you require an IEC number to legally
export your products.
3. Professionals and Service Providers
IEC does not stop at products but extends to service providers as well. For example, IT
firms, consultants, and freelancers who provide services to international customers are
required to obtain an IEC in an attempt to meet compliance obligations.
4. Startups and SMEs
Startups and SMEs who want to reach markets outside their own borders need to obtain
an IEC. It not only facilitates international trade, but it also makes your business more
legitimate with international partners.
5. Individuals Importing/Exporting for Personal Use
Even if you are a private person importing or exporting goods for your own
consumption, e.g., importing a vehicle or exporting handicrafts, you require an IEC. The
condition is not always met, and this causes avoidable hassles in customs clearance.
Why is an IEC Important?
1. Legal Compliance
The IEC code is also compulsorily required under the Foreign Trade (Development and
Regulation) Act, 1992. Without IEC, operation may attract penalties, delays in delivery,
and prosecution under the Act.

3. 2. Customs Clearance
The IEC number is also to be furnished by customs authorities at the time of clearing
and accepting shipments. In the absence of it, your shipment will remain pending at the
port, involving extra storage fees and delays.
3. Access to Government Schemes
IEC is mandatory for most government schemes and exporter incentives, including duty
drawbacks and export promotion schemes. An IEC guarantees that you are able to avail
these schemes.
4. Financial Management and Banking
IEC is required while opening a foreign currency bank account and receiving payment
from foreign buyers. It also allows easy financial management by keeping a clear record
of import/export transactions.
5. International Credibility
An IEC improves the credibility of your company with foreign suppliers and buyers. It
indicates your company is original and adheres to the regulatory standards.
IEC Code Fees and Registration Procedure
Obtaining an IEC number is easy but a detailed process. The IEC code fees are low,
making the requirement attainable by companies of any size. Below is the step-by-step
registration process:
1. Prepare Required Documents
You will require documents like your PAN card, Aadhaar card, bank certificate, and
passport photos. For businesses, other documents like incorporation certificates and
partnership deeds can be asked for.
2. Apply Online
The IEC registration application is applied online using the DGFT website. It is entirely a
digital process, which is simple and quick.
3. Pay the Fees
The IEC code charges are very small, and they are usually in the range of INR 500.
They can be paid online via net banking or other online payment modes.
4. Get Your IEC Number

4. After your application is received and approved, your IEC number is issued within a few
working days. There is no paper certificate; it is issued electronically.
How a GST Company or Consultant Can Help
It may be tricky to negotiate the road of international trade and compliance, particularly
for small firms. This is where hiring the best GST consultant or a good GST company
can come into play. These experts can:
- Walk you through the IEC registration, making sure that all is done and in order.
- Integrate your IEC into your GST as well as other financial management systems.
- Facilitate permanent support in international trade compliance with international trade
regulation, export incentives, and customs clearance.
Outsourcing the services to professionals would allow you to concentrate on your
business growth with the assurance that all the legal guidelines are being met.
Conclusion
OUTBAY for Simplifying International Trade
The Import Export Code (IEC) is a crucial requirement for anyone who engages in
international business. Whether a business owner, e-commerce merchant, or individual
importer/exporter, receiving an IEC is important to guarantee legality, smooth customs
clearance, and access to the global marketplace.
But wading through the intricacies of IEC registration and international trade may prove
daunting. That is where OUTBAY takes over. A reliable financial and compliance
services company, OUTBAY provides end-to-end services for IEC registration, GST
compliance, and finances. OUTBAY ensures that you have an easy time and
confidence when dealing with the world of global trade.
Don't be held back by regulatory challenges. Join OUTBAY today and propel your
company to new levels in the global market!