The Import Export Code, or IEC, is a special number-based license. The regional office affiliated with the Director-General of Foreign Trade assigns this “digit” or code (DGFT). The applicant who wishes to engage in the import and export market should apply for this code. The IEC, or Import-Export Code, is a DGFT-affiliated Pan-based registration individual. This code remains valid for a specific period of time, or until it is canceled.
Advantages of IEC to businesses
Every Business or every company who wishes to expand their Business on Global terms should acknowledge the benefits of IEC as it will help you to reach out to the international market and grow your client count across boundaries. Thus, your Business will grow by leaps and bounds.
Now that you are Importing and Exporting your shipments through Importer Exporter Code you do not have to file for any returns. Once you are allotted with the code there is no requirement or procedures for ensuring that its validity will be sustained. Even with Export transactions, there is no requirement with IEC to file for returns as it is allotted by Director General of Foreign Trade.
There is no Hassle for Renewal as Importer Exporter Code/IEC ‘s Validity exists as long as the commodity exists. Thus, whoever get possession of this code or already has it do not need to worry about renewing it after time.
The Procedure for IEC is very simple and obtaining an Import Export Code from the Director-General of Foreign Trade is the simplest government procedure out there. All the applications are worked out within 0 to 15 days of their submission.
Other than this one should not forget about the various benefit which are offered legally to the person or company that hold IEC. Benefits from Custom, The Export Promotion Council and the Director General of Foreign Trade.
In what situations is IEC Advantageously Used?
- When the importer has to clear his shipments from the customers then it is required by the customs authorities.
- When money is imported by the person via banks then the banks are required with IEC.
- Its applicable at the Customs port when an exporter has to send his shipments.
- It is applicable by the bank when an exporter receives money I foreign currency directly into his bank.
What are the situations in which IEC is not used?
- It is important to note that IEC is not applicable in some of the cases. For example, if you are importing and exporting entities for personal use and there is no commercial purpose involved then you do not need to register for IEC.
- Also Export and Import done by the government and Government Ministries or Notified Chartable Institutions are not applicable to get Import Export Code (IEC)
Import-export licenses are structured to ensure that import and export operations are carried out in a legal manner. If there is something criminal going on, the IE license is suspended, along with other serious punishments, such as prison time.