What is the Import Export Code (IEC)? – A Detailed Guide

What is the IEC Code?

Import Export Code (Known as IEC) is an issue by the Director General of Foreign Trade (DGFT) had a 10 digit identification number. It’s required when anyone want to start the import or export business in India. Without this code, no one can start any type of business dealing in Indian Territory.  Department of Commerce makes the rules and regulation through DGFT for obtaining the IEC Code and other requirements.

At the time of obtaining the IEC Code, some set of rules and regulation should be followed before applying the IEC Code. When you fulfill the certain conditions you can get the IEC Code from DGFT. Basically, IEC Code is a PAN number of the applicant and the DGFT registered applicant PAN no is in the DGFT database and after confirmation of the DGFT the applicant use the PAN no as an IEC Code.

When IEC Code is required?

  1. The Customs authority required IEC Code when importer wants to clear his shipment.
  2. If an importer wants to transfer the fund for his consignment the concern Bank required the IEC code before transfer the money to abroad.
  3. If an exporter wants to ship his material through the port authority needs the IEC Code.

When IEC Code is not required?

  1. IEC Code is not required in case the goods are imported or exported for personal use and not for commercial use.
  2. IEC Code is not required when the goods are imported or exported by the government of India or charitable institutions.

Is any Validity of IEC Code?

After the issue of the IEC Code, they are valid for a lifetime and there is no need for any renewal.

How to Registration for IEC Code?

  1. First, you go with the DGFT website and fill the form Aayaat Niryaat Form no 2 and submit.
  2. Attach all the required documents like address proof, Id proof, Bank Details, etc.
  3. After completion of the form attach the Digital Signature to make the prescribed fee.
  4. After your submission of the application, the DGFT will approve and issue the IEC Code through soft copy.

Which type of Documents required for IEC Code?

  1. Copy of Pan card/Firm/Company/Individual
  2. Copy of Address proof of Firm/Company/Individual
  3. Copy of Bank Statement
  4. Copy of Rent agreement
  5. Copy of Utility bill

Benefits of IEC Code

#1. Unlock International Market: IEC code to open new market place for business. You can export your goods or services the whole of the word. Even you can register your business in another country online platform.

#2. Lifetime validity:  IEC code is valid for a lifetime. If Company or firm relocate or change in management than IEC modification required.

#3. Export Incentive: The govt also promote the export of goods and services due to foreign currency will come and boost the economy. The govt launch multiple schemes from time to time and given a refund of tax or incentive to the exporter to promote the exports.

#4. Online Process: IEC code obtaining process is online and less time-consuming. All the documents are upload online and attaché the DSC.

#5. No Compliance: after obtaining the IEC Code there was no need to file any monthly or yearly file. It’s a one-time license and valid for a lifetime.

#6. No Annual Fee: No annual maintenance fee required for IEC code.

How can surrender the IEC Code?

In case the business is closed and there is no need for further IEC, it can be surrender at any point in time. IEC Closure application can be submitted through the DGFT website. After receiving the cancelation application the issuing authority shall cancel the IEC and authority can further intimate to custom and other regional authority about the cancelation of IEC.