By CS Sarrah H Katawala

 

In 2022, India was number 15 in total exports and 8 in total imports in the world economy. By September 2024, its top exports included petroleum products, drug formulations, pearls, gold, and electric machinery, while its leading imports were petroleum (including crude), gold, electronics components, and coal (Source https://oec.world/en). Observatory Economic Complexity (OEC) is a great website with all the trade data that one can use to import/export goods or services. The increasing global connectivity facilitated by technological advancements has created new opportunities in international trade. The Government is placing significant emphasis on boosting exports to stimulate GDP growth and strengthen its position in the global market.

 

To enter international trade, obtaining an Import Export Code (IEC) registration is essential. Issued by India’s Directorate General of Foreign Trade (DGFT), the IEC is a unique 10-digit number required for businesses or individuals involved in importing or exporting goods and services. It serves as a license for global trade participation, helping the Government track international trade and ensure compliance with regulations. How to Apply: Getting an IEC is easy. You can apply online through the official Government website DGFT. You’ll need some basic documents like your business PAN (tax ID), bank details, and business address proof. Here are some key points to know about IEC registration:- 1) No Expiry: Once you get an IEC, it's valid forever. 2) No Renewal Fees: You don’t need to pay an annual fee. It’s a one-time registration. 3) Required for Customs and Shipping: To import or export goods and clear customs, you must have an IEC. Without it, you can't legally trade internationally. 4) GST registered entity: Consequent to the introduction of GST, the IEC being issued is the same as the PAN of the firm. However, the IEC will still be separately issued by DGFT based on an application. 5) Pre-Requisites for

 

Applying for IEC: IEC may be applied on behalf of a firm which may be a Proprietorship, Partnership, LLP, Limited Company, Trust, HUF, or Society. The address of the entity may be physically verified by the DGFT on issuance of the IEC. The applicant should keep his PAN, bank details, and firm details ready before applying. 6) DGFT Chatbot: It helps exporters/importers/public users instantly with their queries. Users can also connect to Live agents or create tickets in case Chatbot is not trained for their query. 7) Updates: Users can see new notifications, trade notices, public notices & circulars on Chatbot. 8) ICEGATE

 

 Registration: It helps businesses carry out customs-related tasks electronically and facilitates faster customs clearance, with the IEC code serving as a key identifier. 9) Digital Signature Certificate (DSC): It is required to complete the online application process on the DGFT portal. Exemption of Import Export Code (IEC) 1. GST-registered exporters: IEC is not required, as GSTIN serves as the IEC for export purposes. 2. Government departments and PSUs: Exempt from IEC. 3. Personal shipments: No IEC is needed for personal goods for non-commercial use. 4. Certain specific goods/services: May be exempt under DGFT or Customs regulations. 5. Charitable organizations: May be exempt if the trade is non-commercial. India’s growing focus on exports is not just about increasing sales abroad; it is part of a broader strategy to enhance GDP, create jobs, and build a robust, self-reliant economy. Technological integration, combined with Government incentives and infrastructure improvements, will continue to pave the way for India’s export success in the coming years. The IEC is essential in creating global standards for technologies like energy, electronics, and healthcare. These standards help keep products safe, encourage innovations, and support global teamwork. For suggestions on other business topics, the readers may contact the author [email protected]. (The author is a Practicing Company Secretary and she may be contacted at [email protected])