How to Get IEC Code Online: Step-by-Step 2025 Application Guide

This notification comes into effect immediately and applies to all imports cleared on or after 1 February 2025. The reduction aligns with India's broader strategy to position itself as a global electronics manufacturing hub while reducing dependency on fully assembled imports.

Why This Matters for Your Business

1. Immediate Cost Savings

For a typical import consignment worth ₹50 lakh, the duty reduction translates to direct savings of approximately ₹2.5-5 lakh depending on the component mix. This improves your working capital position immediately. Small and medium enterprises importing components for assembly or resale will find their cash flow significantly improved, allowing for larger inventory purchases or investment in expansion.

2. Competitive Pricing

With lower landed costs, you can either:

• Pass savings to customers and gain market share in price-sensitive segments
• Improve margins while maintaining current pricing to fund R&D or capacity expansion
• Reinvest in inventory or technology upgrades to stay ahead of competitors

3. PLI Scheme Alignment

This duty cut complements the Production Linked Incentive (PLI) scheme for electronics manufacturing. If you're a component supplier or assembler, the combined benefits make domestic operations significantly more attractive. The reduced input costs enhance the viability of manufacturing under the PLI scheme, potentially increasing your incentive eligibility while reducing operational expenses.

4. Supply Chain Resilience

Lower import duties encourage diversification of supplier bases. With reduced cost barriers, you can explore premium component sources from additional countries without prohibitive cost penalties, strengthening your supply chain against geopolitical disruptions or regional shortages.

How to Get Import Export Code IEC Online to Benefit from These Duty Cuts

To take advantage of these reduced import duties on electronic components, businesses must first secure an Import Export Code (IEC). Understanding how to get import export code iec online is crucial for any entity looking to import these duty-reduced components legally into India.

Step 1: Eligibility Verification

Any individual or business entity wishing to import electronic components must obtain an IEC from the Directorate General of Foreign Trade (DGFT). This includes proprietorships, partnerships, LLPs, and private limited companies planning to import the duty-reduced components mentioned in the Budget 2025.

Step 2: Document Preparation

Before applying online, gather necessary documents including:

• Permanent Account Number (PAN) of the business entity
• Proof of establishment (GST registration, incorporation certificate)
• Bank account details and cancelled cheque
• Digital signature certificate (DSC) of the authorized signatory

Step 3: Online Application Process

Visit the DGFT website to initiate how to get import export code iec online:

1. Register on the DGFT portal using your PAN
2. Fill out the ANF 2A application form with accurate business details
3. Upload required documents in specified formats
4. Pay the application fee online (currently ₹1,000)
5. Submit the application and note the reference number

Step 4: Processing and Receipt

Once submitted, the DGFT typically processes IEC applications within 2-3 working days. Upon approval, the IEC number (a 10-digit code) is sent via email and available for download from the portal. This code must be quoted on all import documentation to benefit from the reduced 10% BCD rates announced in Budget 2025.

Important Compliance Note: Ensure your IEC details remain updated in the DGFT portal, particularly when importing these newly duty-reduced electronic components, as incorrect information may delay customs clearance and prevent you from accessing the reduced duty benefits immediately.

Immediate Actions You Should Take

✓ Review Pending Shipments

If you have shipments arriving in the next 30 days, confirm with your customs broker that the new rates will be applied. Request revised duty calculations and ensure your Bill of Entry reflects the updated 10% BCD rate rather than the previous 15%.

✓ Update Pricing Models

Recalculate your landed costs using the new 10% BCD rate. Share updated pricing with your sales team and key customers immediately. Consider creating tiered pricing strategies that reflect the new cost structure while maximizing competitive advantage.

✓ Verify IEC Registration Status

Before importing under the new duty structure, confirm your IEC is active and valid. If you don't have one, prioritize understanding how to get import export code iec online through the DGFT portal to ensure compliance.

✓ Check BCD + IGST + SWS Structure

Remember: BCD is just one component. Your total duty outflow includes:

• BCD: 10% (reduced from 15%)
• Social Welfare Surcharge (SWS): 10% on BCD
• IGST: 18% on (CIF + BCD + SWS)

Example calculation for ₹10 lakh CIF value:

Frequently Asked Questions (FAQ)

Q1: Do I need an Import Export Code (IEC) to benefit from these reduced duty rates?

Yes, absolutely. To import any electronic components into India, including those covered under the Budget 2025 duty reductions, you must have a valid IEC issued by the DGFT. If you're wondering how to get import export code iec online, the process involves applying through the DGFT portal with your PAN, business registration documents, and bank details. The application fee is ₹1,000 and processing typically takes 2-3 working days.

Q2: Can I apply the new 10% BCD rate to shipments that arrived before February 1, 2025?

No, the reduced duty rates apply only to imports cleared on or after 1 February 2025. For shipments that arrived before this date but are still in customs clearance, you should consult with your customs broker immediately. The Bill of Entry date determines the applicable duty rate, not the shipment arrival date or bill of lading date.

Q3: How does the IEC registration process work for startups wanting to import these duty-reduced components?

Startups can easily complete how to get import export code iec online by following the DGFT's simplified digital process. You'll need your company's PAN card, incorporation certificate from MCA, GST registration, and a current bank account. The online application (ANF 2A) requires a digital signature certificate (DSC) for submission. Once approved, your 10-digit IEC number allows immediate importing under the new 10% BCD structure, enabling startups to access global component markets at reduced costs.

Q4: Are there any additional compliance requirements beyond having an IEC when importing these electronic components?

Yes, while having an IEC is mandatory for customs clearance, electronic components may require additional certifications depending on the product type. For instance, certain electronic items fall under BIS (Bureau of Indian Standards) compulsory registration. Additionally, you must ensure accurate HS code classification to avail the correct 10% BCD rate. Always verify that your IEC details match exactly with your GST and PAN records to avoid clearance delays that might prevent you from accessing these duty benefits immediately.

Q5: Can existing businesses modify their IEC details online if they want to start importing these newly duty-reduced components?

Yes, the DGFT portal allows existing IEC holders to update their details online through the "IEC Modification" feature. If your business previously exported only but now wants to import electronic components to benefit from the Budget 2025 duty cuts, you can update your IEC profile to include imports. This process also requires DSC authentication and typically processes within 1-2 working days. Ensure your bank details and business address are current before initiating imports to prevent payment or documentation mismatches.

Sources & Official References

• Union Budget 2025-26 Speech: Ministry of Finance
• Customs Notification: CBIC
• DGFT Trade Notice: DGFT
• PLI Scheme for Electronics: MeitY
• IEC Application Guidelines: DGFT ANF 2A

⚠️ WATCH OUT: While the BCD reduction is immediate, ensure your customs broker is applying the correct HS codes. Misclassification could result in higher duty payments or compliance issues. Always verify against the latest Customs Tariff. Additionally, verify that your IEC registration is active and updated before attempting to import under the new duty structure, as expired or inactive IECs will block customs clearance regardless of the favorable duty rates.

Need help calculating your new landed costs, understanding how to get import export code iec online, or understanding how this duty change affects your specific product category? Contact our import consultants for a personalized assessment.

Need help with this process? Befach handles the entire process end-to-end so you can focus on your business. Let us handle it