An import export code is a one-of-a-kind number issued to a candidate by the regional office of the director general of foreign trade (DGFT) that wishes to participate in any export or import operation. In the world of business, it’s referred to as an “Import Export Code, IE Code, or IEC.” The IEC is a DGFT-wide registration of individuals that is valid until it is revoked or surrendered. To put it another way, no person can start an Export or Import business unless an IEC is allotted and is valid. Difference between Import Export Code and Import License.
An IEC is a 10-character alpha-numeric number allotted to an individual that is compulsory for undertaking any export/import activities
- The IEC is a Pan Based Number. Only one IEC is allotted against one PAN Number
- The entire procedure of allotment of IEC is online
- In some cases, explanation may be filed in offline mode
- The application for IEC can be made only through digital signature
- No export or Import can occur without IEC
- IEC is a unique identification of the importer or exporter with the DGFT
- IEC code is always valid unless cancelled or surrendered.
The “License for Export or Import,” on the other hand, is a permit from the central government to participate in any regulated import or export activity. Certain products are not authorized to be freely imported into India because the government may enforce import restrictions.
Why is it important to apply IEC?
For the Expansion of Business- Through IEC one can expand their business or Enterprise globally in an authorized manner.
Number of Benefits- There are a number of benefits applicable if you apply IEC. For example, import/ export from DGFT, Export Promotion Council, Customs etc on the accordance of their IEC registration.
No need to fill Returns-You do not have to fill any returns. Once you are allotted with it there is no Use to go on with any type of processes for sustaining validity. Even with export transactions, there isn’t any requirement for filling returns with DGFT.
Handy Processing – It is very convenient to obtain IEC code from the DGFT within a time period of 10-15 days after submitting the application. Also, there is no need to provide any proof of any export or import for getting IEC code.
There is no requirement for renewal as IEC is applicable for lifetime of an entity. After you obtain it you can use it with every export and import transactions.
What is the Situation in which Import Export Code is 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 Custom 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.