Import Export Code (IEC)

IEC is known by many names such as Importer Exporter Code, Import Export Code, Import Export License, Import Export Number, IE Code, IEC License, IE License, etc. In simple terms, IEC is a 10-digit code which is provided by DGFT required for import-export transactions. You can take an IE code in your personal name or company name.

Validity of IEC

An IEC number issued to an applicant shall be valid for all its divisions/units/factories/branches. IEC is valid for a lifetime, and there is no need to renew it.

IEC Registration Requirement

IEC registration is required by a person for exporting or importing goods. It is a 10-digit code which is issued by the Directorate General of Foreign Trade (DGFT). All businesses which are engaged in Import and Export of goods require registering for the Import Export Code. The IE code has lifetime validity. Importers are not allowed to proceed without this code, and exporters can’t take the benefit of exports from DGFT, customs, or the Export Promotion Council, if they don’t have this code.

Usage of IEC

The IE Code must be quoted by importers while clearing customs. Also, banks require the importer's IE Code while sending money abroad. For exporters, the IE Code must be quoted while sending shipments. Banks also require the exporter's IE Code while receiving money from abroad.

Benefits of Import Export Code

Do Export Import Business:

The first requirement before you start an import/export business in India is to obtain an IEC. An IEC is necessary for the import/export of goods. In case the import/export is of services or technology, IEC is required only in limited circumstances, such as when import/export is in 'specified services' or 'specified technologies'. These include services or technologies in which international trade is restricted by the Government of India for national security, such as dealing in nuclear weapons, automatic guns, etc.

Avail Export Incentive:

Companies could avail several benefits of their imports/exports from the DGFT, Export Promotion Council, SEIS Scheme, Customs, etc., on the basis of their IEC registration.

Documents Required for Import Export Code:

• Passport Size Photograph (Soft Copy) of applicant (Proprietor/Director/Partner)
• Identity proof of applicant (Proprietor/Director/Partner) (Passport, Driving License, Aadhaar card, Voters ID)
• Cancelled Cheque for Support of Bank Details
• PAN card of Company/Firm/LLP/Proprietor
• AOA and MOA (In case of company)
• Business Address Proof (Utility Bill/Lease Agreement/Sales Deed if owned property)
• Certificate of Incorporation (In case of company)
• Certificate of Registration (In case of Trust/Society)
• Partnership Deed (In case of Firm)

Important Features of Import Export Code:

• EXPORT SCHEME BENEFIT: All importers who import goods are required to register for the Import Export Code, and all exporters need this code to obtain the benefits of exports.
• NO RETURN FILING: IEC code holder does not require filing any returns.
• LIFE TIME VALID: IEC Code is issued for a lifetime and requires no renewal.
• INDIVIDUAL CAN OBTAIN: Even individuals who are proprietors can obtain the code in their name. It is not necessary to set up a business for the same.
• SINGLE CODE: The IEC issued is valid for all the branches or factories of the importer/exporter.

In Which Cases Import Export Code is Mandatory:

• When an importer has to clear his shipments from customs, it’s needed by the customs authorities.
• When an importer sends money abroad through banks, it’s needed by the bank.
• When an exporter has to send his shipments, it’s needed by the customs port.
• When an exporter receives money in foreign currency directly into his bank account, it’s required by the bank.