IMPORT EXPORT CODE

What is Import Export Code?

Import Export Code (IEC) is required by a person who’s want to start import export business in India. IEC Code is issued by the Director General of foreign trade (DGFT). It’s a 10 digit code with a lifetime validity. Mostly importers merchant can’t import any goods without the IEC Code and exporter merchant can’t avail the benefits from the DGFT Department for the export scheme etc.

IEC is required in following situations:

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

Documents needed for IEC (Import Export Code) Registration

For IEC Code Registration following documents are required:

• Individual’s or Firm’s or Company’s copy of PAN Card.
• Individual’s voter id or Aadhar card or passport copy.
• Individual’s or company’s or firm’s cancel cheque copy of current bank account.
• Copy of Rent Agreement or Electricity Bill Copy of the premise.

Cases where Import Export Code (EIC) is not mandatory

According to the latest circular issued by the government, IEC is not mandatory for all traders who are registered under GST. In all such cases, the PAN of the trader shall be construed as new IEC code for the purpose of import and export.

Import Export Code (IEC) isn’t required to be taken in case the goods exported or imported is for the personal purposes and isn’t used for any commercial purpose.

Export/ Import done by the Government of India Departments and Ministries, Notified Charitable institutions need not require getting Import Export Code.

Features of Import Export Code

• Business growth Taking your services or products to the international market will enlarge your businesses. IEC enable you to sell products outside India.
• Export Subsidies On the basis of IEC, companies or firms can benefits and subsidies their exports/ imports from DGFT, Customs and export promotion council.
• Lifetime validity Once you are done with IE Code Registration and submit all the required documents, IE Code is issued for the lifetime of the entity and requires no renewal.
• No Return Filing IE Code does not require filing of any return. Once, an IE Code is issued there are no further procedures required to maintain validity of the IE Code.
• Individuals can have IE Code Even individuals who are proprietors of a business can obtain IE Code in their name. It is not necessary to incorporate a business entity for obtaining IE Code.