Import Export Code (IEC) is a ten-digit unique code that will be assigned to you or your company by the Director General of Foreign Trade (DGFT) and is a mandatory requirement if you want to engage in any kind of import or export of goods in India regardless of the value of the trade. The IE Code serves as proof of your entity's registration with the DGFT and is required for customs clearance and to avail of various benefits and schemes offered by the government.

The IE Code is unique to each business entity and once you have obtained an IE Code for your business it is valid for a lifetime and is non-transferable

You will also need to renew the Importer Exporter Code every year, it is mandatory now for IE Code License holders. Once the import export code is issued, you can apply for port registration on the ICEGATE portal with the help of AD Code registration.

However, IEC is not necessary to be obtained if you are engaged in the export of services except when you as a service provider are taking benefits under the Foreign Trade Policy.

The main purpose of the IE Code is to track and monitor your imports and exports and to ensure that they comply with the country's foreign trade policy.

An IE Code is mandatory if you wish to import or export goods in India, and is required to be quoted in all shipping documents. 

Here are some examples:

1. Custom Clearance: If you are importing or exporting goods, an IE Code is required for customs clearance documents such as the bill of entry for imports and the shipping bill for exports.
2. Commercial Invoice: The IE Code number is included on the commercial invoices issued by an exporter to the importer to identify parties involved in international trade transactions.
3. Banking Transaction: Banks require IE Code for processing international trade-related transactions both receiving foreign currency and making any payments abroad.
4. Letter of credit: Banks also require IE Code to process letters of credit and other trade finance instruments.
5. Export Promotion Council Registration: Registration with export promotion councils and boards, which provide export-related benefits and support, also requires an IE Code.
6. Custom Bonds and Guarantees: IE Code is needed to execute various custom bonds and guarantees for various trade facilitation schemes.

Having an IE Code also allows an importer or exporter to avail of various benefits and incentives by the government for promoting trade. Besides, government tenders that involve international trade require an IE Code.

Every registered business including proprietorship, partnership, LLP, Limited companies, HUF, trusts and societies require an IE Code if they import or export for commercial purpose

Although the following categories of person have been exempted from obtaining Importer Exporter Code

1. Ministries or Departments of Central or State Government.
2. Persons are importing or exporting goods for personal use unrelated to trade, manufacturing, or agriculture.
3. Persons importing or exporting goods from or to Nepal, Myanmar through Indo-Myanmar border areas and China, provided the CIF value of a single consignment does not exceed Rs.25,000. In the case of Nathula port, the applicable exemption ceiling is Rs.1 lakh. 
4. Exemption from obtaining IE code is not applicable in exporting special chemicals, organisms, materials, equipment, and technologies listed in Appendix 3 of Schedule 2 of ITC HS.

You can apply for Importer Exporter Code (IEC) online through the DGFT (Directorate General of Foreign Trade) website. Here is an overview of the process:

Step 1: Go to the DGFT website and create an account using your email and mobile number.

Step 2: Once logged in, click the "Apply for IEC" button → Click on the “Start Fresh Application” button or click on the “Proceed with Existing Application “Button in case you have already saved a draft application.

• Fill out the application form 
• Select the nature of the Concern/Firm.
• Enter Firm Name
• PAN, Name (As per PAN Database) and Date of Birth/ Date of Incorporation
• Firm Address details, you will also be required to attach the address proof as listed in the Document required section
• Select “Whether the firm is located in the Special Economic Zone (SEZ)?” & “Whether the firm is located in the Export Oriented Unit (EOU) Scheme, Electronic Hardware Technology Park (EHTP) Scheme, Software Technology Park (STP) Scheme or Bio-Technology Park (BTP) scheme)?” 
• Enter the GSTIN Number of the firm/concern (If applicable)
• Enter the Details of the Director/Partner/Proprietor/Karta/Managing trustee (As applicable)
• Under the Bank Account section, enter the Account Number, Account Holder Name, IFSC code, Bank Name, and Branch Name and attach proof (Cancelled Bank Cheque / Bank certificate).

Step 3: Enter the details in the “Other Details (Exports Sectors preferred)” section. Select the reason and answer the question “Why are you applying for IE Code or where will this IE Code be utilized?”

Step 4: Give your declaration, check the Application Summary → click on the Sign button to sign the application using your DSC or Aadhaar-based OTP.

Step 5: Confirm and proceed to make the payment against the application

Step 6: After Successful Payment, the Page shall be redirected to the DGFT Website and the receipt shall be displayed, you can also download the receipt → Once the application is approved, you will receive your IE Code via email or post.

It's worth noting that before applying for IE Code the business should be registered with the Ministry of Corporate Affairs (MCA) or Registrar of Companies (ROC) and should have a PAN card.

The Official DGFT fee for Import Export Code Registration is Rs. 500, But you may require an IE Code Expert for accuracy filing for your Import Export Code for which the professional fee charged is Rs.2500. At CharteredONE, IE Code expert filing charges is just Rs. 1,099 as shown in the table below:

The Benefits of having an Import Export Code are as follows:

1. Facilitation of import and export procedures: IE Code is required for all documents related to imports and exports, such as shipping bills, bills of lading, and import-export declarations. Having an IE Code ensures that all of these documents are processed smoothly and efficiently.
   
2. Eligibility for various benefits: Importers and exporters with an IE Code are eligible for various benefits, such as duty-free imports and exports, export promotion schemes, and trade agreements.
3. Compliance with government regulations: IE Code is mandatory for businesses engaging in international trade, and failure to obtain one can result in penalties. Having an IE Code demonstrates that the business is compliant with government regulations.
4. Reputation and credibility: Obtaining an IE Code is a sign that a business is legitimate and operating in compliance with the laws and regulations. This can help build the reputation and credibility of the business, particularly among foreign clients and partners
5. Business expansion: Having an IE Code allows a business to expand into international markets, which can help increase revenue and growth potential.
6. Access to trade financing: Some of the trade financing institutions in India require an IE Code for funding, so having an IE Code can give a business access to additional financing options.