Export-Import Certification UP

Understanding the IEC: Your Global Trade ID

The Import-Export Code (IEC) is not just a formality; it’s the legal mandate that authorizes your business to perform international trade transactions.

What is the IEC?

• A 10-Digit Code: It’s a unique, Permanent Account Number (PAN)-based code issued by the DGFT. In fact, since the introduction of GST, the IEC for a firm is now the same as its PAN.

• Mandatory Requirement: No person or business can legally import or export goods/services from India without an IEC, unless specifically exempted. It is required for customs clearance and for receiving/sending foreign currency through banks.

• Lifetime Validity: Once obtained, the IEC is valid for the lifetime of the business. It requires no annual compliance or renewal fees, making it one of the most hassle-free registrations in India.

Why is the IEC Critical for a UP-Based Business?

Uttar Pradesh is a major exporter of goods like leather from Kanpur and Unnao, brassware from Moradabad, handicrafts, textiles, carpets from Varanasi, and sports goods from Meerut. For GlobaX Solutions, obtaining the IEC:

• Legalizes Foreign Trade: It’s the primary legal requirement to start importing and exporting.

• Facilitates Customs Clearance: Without a valid IEC, your shipments will not be cleared by the Customs authorities at any Indian port (like ICD Tughlakabad, Inland Container Depots across UP, or Gateway Ports like Mumbai/Mundra).

• Unlocks Export Benefits: This is the most significant advantage. An IEC is mandatory to avail of government export promotion schemes and incentives, such as RoDTEP (Remission of Duties and Taxes on Exported Products), Duty Drawback, and schemes under the Foreign Trade Policy (FTP).

• Simplifies Banking: Banks require the IEC to process international money transfers (FOREX transactions) related to import and export activities.

• Builds Credibility: Possessing an IEC establishes your business as a legally compliant entity, building trust with foreign buyers and suppliers.

💻 The Step-by-Step Online Application Process

The entire application for the IEC is online through the official DGFT website. The process is quick, typically taking 1 to 3 working days after submission, provided your documents are in order.

Phase 1: Preparation of Mandatory Documents

Before you begin the online application, ensure you have the following ready (scanned copies):

1. Permanent Account Number (PAN) Card of the business entity (or individual applicant).

2. Proof of Bank Account: A cancelled cheque or a Bank Certificate from a bank authorized to deal in foreign exchange, clearly showing the entity’s name and current account number.

3. Proof of Address of the business premises (Sale Deed, Rent Agreement, or utility bill like an Electricity Bill/Phone Bill).

4. Digital Photograph of the designated partner/director/proprietor (passport size).

5. Entity-Specific Documents (e.g., Certificate of Incorporation/Partnership Deed/LLP Agreement).

Phase 2: Online Application on the DGFT Portal

1. Visit the DGFT Portal: Go to the official DGFT website ($[https://dgft.gov.in](https://dgft.gov.in)$).

2. Register/Log in: Register as a new user or log in using your credentials.

3. Apply for IEC: Click on the ‘Apply for IEC’ or ‘Services’ $\rightarrow$ ‘IEC Profile Management’ link.

4. Fill Application Form: Fill in the necessary details, including your business name, address, PAN, bank account details, and preferred product categories (based on ITC-HS Codes).

5. Upload Documents: Upload the mandatory documents prepared in Phase 1. Ensure they are clear and high-quality.

6. Pay the Application Fee: Pay the requisite government application fee (currently ₹500) online through Net Banking or Debit/Credit Card.

7. Submission and Issuance: Upon successful submission and verification by the DGFT, your e-IEC Certificate will be issued and sent to your registered email address, usually within a few working days.

📈 Leveraging Your IEC: Beyond the Code

Obtaining the IEC is just the beginning. For GlobaX Solutions, it’s the gateway to a powerful ecosystem designed to boost Indian exports.

1. Registration-cum-Membership Certificate (RCMC)

Once you have your IEC, the next crucial step is getting an RCMC.

• What it is: A certificate of membership with an appropriate Export Promotion Council (EPC) or the Federation of Indian Export Organisations (FIEO).

• Why you need it: An RCMC is mandatory to claim most export incentives and benefits under the Foreign Trade Policy.

• Which Council? Depending on your product/service, you’ll register with the relevant council (e.g., FIEO, CHEMEXCIL, EEPC India, or EPCH for handicrafts).

2. AD Code Registration at UP Ports

If you plan to ship your goods through a specific port, you must register your Authorised Dealer (AD) Code with the Customs Office at that port.

• What it is: A letter from your bank stating the bank’s AD Code (a 14-digit number) that allows the bank to deal in foreign exchange.

• UP’s Trade Infrastructure: While UP is landlocked, it has a strong network of Inland Container Depots (ICDs) like those in Dadri (Greater Noida), Kanpur, and Agra. Goods cleared at these ICDs are eventually transported to gateway ports. You must register your AD Code at the Customs house relevant to the port you will be using most often.

3. Accessing Export Incentives

With a valid IEC and RCMC, GlobaX Solutions can strategically tap into various central and state government schemes:

• RoDTEP Scheme: This is the flagship scheme that refunds various embedded central, state, and local duties/taxes that were not earlier rebated or refunded.

• Interest Equalization Scheme (IES): Provides interest subvention on pre- and post-shipment export credit, reducing your borrowing cost.

• Market Access Initiative (MAI): Provides financial assistance for export promotion activities like participating in international trade fairs and setting up showrooms abroad.

• UP Government Schemes: The Uttar Pradesh Export Promotion Council (UPEPC) offers state-specific support, including subsidies on freight charges, air freight subsidies for cargo sent from UP’s Air Cargo Complexes (like Lucknow and Varanasi), and marketing support for MSME exporters.