Import Export Code (IEC) means :

Import Export Code (IEC) registration is required for Cross-selling of Goods and/or Services from India (Outside the Domestic Boundaries). It is mandatory for all Importers / Exporters to mention their Import Export Code while Importing / Exporting Goods and/or Services from / in India.

IEC is a 10 digit Code and Import Export License Certificate issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industries, Government of India to Indian Companies. The task of regulating foreign trade in India is managed by the DGFT. Part of the larger Ministry of Commerce and Industry, the governmental body is responsible for the formulation of trading policies, regulatory framework and issuance of licenses.

It is a mandatory license for every commercial importer or exporter. Without this code no business can be performed in the import export category or to take
the benefits provided by the government on this Sector. Additionally, the Reserve Bank of India (RBI) has made it mandatory for all the traders to mention their IE Code, while making any payment transfer/ sending money abroad. Customs Department also seek IE code before clearing the shipment from overseas.

Import Export Code (IEC) once issued can be used by the entity throughout its existence and do not require any renewal or filing. Once the company obtained IEC then the company can perform all their import export requirements without any issues.

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IEC Required in the following situations :

  • If the Organizations or firms plans to do any import/export activities then it is mandatory. Without IEC, the Organizations or firms cannot perform any import/export activities.
  • Organizations or firms can take different advantages and or / subsidies from DGFT, Customs, and Export Promotion Council on their Import Export.
  • To clear or send his shipments from the customs then it is needed by the customs authorities or customs port.
  • An importer plans to sends money outside India through his banks then it is needed by the bank.
  • An exporter receives money in foreign currency directly into his bank account then it is required by the bank.

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Benefits of IEC Registration :

(A) To Expand Business Globally : IEC Registration supports the growth and development of your organizations/business to a certain standard. It also helps you to expand your business worldwide by taking your product or services to the International market.

(B) To Avail Several Benefits : The Companies could avail several benefits/subsidies of their imports / exports from the DGFT, Export Promotion Council, Customs, etc., on the basis of their IEC registration.

(C) Easy Processing : It is fairly easy to obtain IEC code from the DGFT within a period of 1 to 2 days after submitting the application. There isn’t any need to provide proof of any export or import for getting IEC code.
(D) Lifetime Validity : Import Export Code (IEC) once issued can be used by the entity throughout its existence and do not require any renewal or filing. Once the Company/Organizations obtained IEC then they can perform all their Import/Export requirements without any issues.

(E) Government Proof : Import Export Code (IEC) will also act as a government proof for the business or entity name when you need to submit for any legal or regulatory requirement like opening a Bank Current Account.

(F) No Returns Filing : Unlike other government documents, IEC does not need to file any returns to the DGFT department. This is a maintenance free document. Once the IEC is obtained there is no need to file the returns even if you perform or not perform any Import or Export transaction.

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Procedure to obtain IEC Certificate

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