IMPORT & EXPORT CODE (IEC)
An Import Export Code (IEC), also known as Importer-Exporter Code, is a crucial business identification number for anyone involved in international trade in India. It’s issued by the Directorate General of Foreign Trade (DGFT), a department under the Ministry of Commerce and Industry.
Mandatory Requirement:
Obtaining an IEC is mandatory for businesses that want to:
- Export goods or services from India
- Import goods into India
There are some exceptions, like individuals or companies importing for personal use. But for most businesses engaged in international trade, an IEC is a must-have.
Key Features of IEC:
- Unique 10-digit code: It serves as a unique identifier for your import-export activities.
- Lifetime validity: Once issued, the IEC remains valid for the lifetime of your business.(Subject to Annual KYC)
- Online application: The application process is done electronically through the DGFT portal.
Benefits of IEC:
- Legal Compliance: Possessing a valid IEC ensures you comply with Indian Foreign Trade regulations.
- Smooth Business Operations: An IEC simplifies procedures like customs clearance and accessing trade benefits.
- Increased Credibility: Having an IEC demonstrates your legitimacy to international trade partners.
How to Apply for an IEC:
- Visit the DGFT website (https://www.dgft.gov.in/) and navigate to the IEC registration section.
- Fill out the online application form with details about your business.
- Submit the application and requisite documents electronically.
- Pay the processing fee (usually minimal).
Once the application is processed and approved, you’ll receive your IEC electronically.
Additional Notes:
- In some cases, your IEC might be linked to your Permanent Account Number (PAN).
- It’s advisable to consult with a professional if you have any complexities regarding IEC or the application process.