The value of goods exported from India in 2019 alone was at $324.25 Billion! With better access to ecommerce export programs and awareness of international opportunities among sellers, the export trade from India has grown steadily.
Whether they have a local business or are exporting offline, many Indian sellers are now keen to opt to sell globally via ecommerce. The trend isn’t surprising considering one of the largest ecommerce export programs, Amazon Global Selling, has witnessed a 100% growth since Q1 in 2019.
The process to start exporting online is easy and simple. To begin with, you have to get an Import-Export Code (IEC) - it can be done online without any hassles. In this blog, we’ll tell you more about IEC and how you can register for it.
What is an IEC?
IEC, which stands for Import-Export Code, is a 10-digit business identification number allotted to an importer or exporter by the Directorate General of Foreign Trade (DGFT). It is only issued based on the Permanent Account Number (PAN) of a business.
An IEC is the key to carrying out imports and exports of any product or service beyond the national boundaries. An individual can either obtain the IEC in their name or the name of the company. This code also enables the importers and exporters to benefit from the export promotion councils and the DGFT.
How to apply for an IEC?
IEC can be applied and registered online in a simple six-step process. The documents submitted online enable the government to check the identity of an individual or business seeking registration. Earlier, applications for the IEC were via offline mediums. However, after a recent update in the policies of the DGFT, only online applications are valid, making it easier for sellers.
Here’s a detailed guide to aid in the process of applying and registering for an IEC:
Step 1: Log in to the DGFT website
The first step to apply for IEC is to log on to the DGFT website (a government body that handles export duty in India). On reaching the homepage, you can find information about exports including the latest updates and notifications issued by the DGFT.
To register, go to the services tab and click on IEC profile management. In the new page, you'll find details about IEC. Under processes in IEC, click on apply for IEC. A pop-up will appear. You can either login to the DGFT website, if you already have an account or you can register and create a new account.
Step 2: Enter PAN details
Once you have logged in, the screen displayed in front of you will ask for your PAN. Once you enter your PAN details, your ‘mobile number’ and ‘email ID’ will be required. Post that, enter the CAPTCHA code and generate the token.
On successful verification of the code, necessary details will be required.
For an individual, you will be asked:
2. Date of birth
For an entity, you will be asked:
1. Company name
2. Date of incorporation
An OTP is a one-time password that helps verify the details and identity of the person. After filling all the details, enter the OTP received on your mobile number and email and click submit. The CBDT PAN server will verify your details.
Step 3: Enter business details
The next page will display an E-COM number that will be used for all future communications regarding your e-IEC application. You are required to enter details regarding your business in this form. It includes date of incorporation, nature of concern, and bank details.
Post this, enter applicant details including date of birth, name, applicant address, PAN, date and place of submission. Next, fill the branch details relating to your business In case of no branches, this space can be left empty.
Step 4: Enter partner details
In the next step, enter details of director in case of a business or partner details, in the case of a partnership firm.
Step 5: Upload documents & pay fees
Next, upload necessary documents such as address proof and bank certificate/cancelled cheque. Upload the documents in the format selected, such as PDF or GIF. These documents must be scanned and uploaded.
A payment form will now pop-up on your screen. The IEC application fee is ₹500. On entering the amount and clicking the submit button, several payment portals will be available. Choose the appropriate one and make your payment.
Step 6: Preview & submit application form
After completing all the above steps, you can preview your application form and print it as a record for official purposes. In case you come across any discrepancy, you can go back and make the necessary changes.
After reviewing your application, making the necessary changes, and complying with all the conditions mentioned in the checklist, you can click the submit button. Your IEC certificate will be generated by the DGFT within a period of 10 to 15 days after submitting the application.
Need help with IEC?
To apply and register for IEC, you can also get assistance from the Service Provider Network - a group of trusted third party service providers identified by Amazon. The team of experts will help you with everything you need to be successful in your export business including IEC application.
How to start an export business
To seek the benefits of the various schemes laid down by the Federation of Indian Export Organisations (FIEO), you must obtain the IEC.
Once you have an IEC, you're closer to your dream of exporting from India. You can take your business to international customers across the globe from the comfort of your home. More than 70,000 sellers have become Amazon global sellers and have established their businesses globally. Wondering how?Amazon Global Selling
has closely assisted these sellers to expand to 200+ countries and territories. Apart from reaching millions of customers, the ease of export business with Amazon is what makes sellers register. From shipping and delivery to managing customer feedback and assistance in advertising, you can use state-of-the-art tools and give your brand a global presence.
Here are a few benefits of exporting with Amazon Global Selling:
Grow your business globally
Why limit to India when you can acquire new international customers? Amazon Global Selling takes your business to millions of customers across the world.
Diversify your sales all year round
Not just Diwali, make the most of international peak selling seasons & sale events like Prime Day, Christmas, Black Friday, and Ramadan, among others. Choose from 30+ categories to sell globally.
Use Amazon's tools for easy expansion
You can focus on your business while Amazon helps you with international logistics like Fulfillment by Amazon (FBA) and customer service, among others.
Published on April 25, 2020.