Import Export code more commonly known as IEC is a ten digit code number. It is given to an Importer or Exporter by Director General of Foreign Trade, Ministry of Commerce and Industries, Government of India. Any Entrepreneur who wishes to import something to India or export something from India requires an import export code. It has a permanent validity. There are certain benefits of this code. Though exporters need not necessarily apply for this code, however, they will miss out the otherwise provided benefits. Also, RBI is now making the mention of IEC code mandatory in bank account.This code generally comes in play when you decide to expand your business globally. Code can be obtained on your name(in case of proprietorship) or on your company’s name. To register import export code a proper procedure is followed. This registration is governed by The Foreign Trade Act, 1992.
However, obtaining a code doesn’t permit you to start importing or exporting. A License and other documents are also required. IEC code is just a requirement which provides certain benefits also
IEC registration process: IEC can be registered with the DGFT via online or offline. You can download the application form
Who needs an IEC?
Any legitimate person or company starting a deal for International trade.
What are the benefits of IEC?
On the basis of IEC, companies or firms can achieve profit on their exports/ imports from DGFT, Customs and export promotion council.
IEC is necessary to import or export, without importer/exporter code no import or export shall be made by any person or entity.
Taking your services or products to the international market will enlarge your businesses
IEC is not required under the following prospects:
You are not allowed to import or export for personal use which is not connected with business, manufacture or agriculture.
Import or export by government departments and ministries and certain notified charitable organizations.
Features of IEC
No import or export shall be made by any person or entity without an Importer- Exporter Code (IEC) number. An importer- exporter code shall be granted on application to the capable authority.
IEC is sent through speed post to verify the address of the firm or entity that intends to hold on the business of import/export, so not handed to the applicant over the counter. Therefore it is obligatory for the entity to affix the Board indicating name and address of the firm at the business place.
An allotted IEC number shall be valid for all its branches/ units/ factories/ divisions as mentioned on the IEC number.