An Import Export License comes from when there is a matter regarding the ethics of the materials that are being imported or exported. There are many items that cannot be regarded either to be import or export materials that includes human cargo. The import export license is made to create some restrictions to make assurance that some business activity is maintained within the limits of the law. The reasons for the import export license to exist are as follows:
- Protecting the human lives, plants and animals.
- Protecting the morals of the public.
- To protect the intellectual protecting rights.
- For maintaining the artistic, historic as well as archaeological value of national treasure.
- To conserve the national resources.
- Moreover, to discourage as well as limit the trafficking of weapons, war related items and illegal drugs.
- Relating to import or export of gold or silver.
The abbreviation of IEC is Importer- Exporter Code. IEC is regarded as a key business identification number that is compulsory for the purpose of export from India as well for the purpose of import to India. Without having an IEC no export as well as import must be made by any person. It is not a hard process but an easy process to obtain IEC Code from the DGFT within a time span of 10-15 days after the submission of the application. After the IEC Code is obtained, the code is used for the purpose of import as well as export. The validity of IEC Code remains for its lifetime unless and until one’s cancelled it.
An Importer Exporter Code is mandatory for the export as well as import of goods. IEC Code is necessary for those who wants to start their import/export business. The IEC Code is issued by the DGFT and it is a 10-digit code that has validity for lifetime. The IEC Code is compulsory only for the purpose of commercial and business.
The uses of Import Export Code are as follows:
- Business Expansion.
- IEC does not need the filling of any returns.
- Through the IEC registration the companies could get several benefits from the DGFT, Export Promotion Council etc.
- IEC Code is very easy to obtain from the DGFT within a time span of 10-15 days after the application get submitted.
- IEC Code is valid for lifetime and no renewal is required.
- IEC Code is important because it reduces the manufacturing costs.
IE Code is regarded as the key that allows the user to conduct import as well as export activities. On the other hand, IE License is a notification that gives assurance that import as well as export business are both conducted in a legal way.