What is IEC?
Importer Exporter Code (also known as IEC, Import Export Code, IE License, IE code, etc.) is a 10 digit identification number. The regional office of the DGFT (Director General of Foreign Trade) issues the code to Indian companies and business organizations. It is mandatory for every importer and Exporter carrying out business in India.
Benefits of an Import Export License
- Avail Government Benefits
- DGFT, EPC, Customs, and other such government bodies offer benefits and schemes which can be availed only with an IEC.
- Minimal Compliance
- Unlike other licenses, you only require basic documents while registering. You do not have to renew the IEC as it has lifetime validity. There is no requirement of filing returns with DGFT.
- Global markets
- IEC assists traders to grow their business and not constrain to Indian markets.
- Efficient processing
- DGFT issues an IEC with 5-15 days of submitting an application.
- No eligibility constraints
- Any property owner can apply in their name (not necessary to have an established business) or under the company’s name. The code is valid for all the company’s branches, factories, and units.
When is the IEC Registration required?
- Customs authorities
- Customs authorities request an IEC code to clear the shipments of Exporters and Importers.
- Banks and Financial Institutions
- Banks require it to transfer and receive money in Importers and Exporters bank accounts.
When is IEC not required?
- When registered under GST
- Traders registered under the GST do not require an IEC. They may use the PAN of an entity instead.
- Personal Purposes
- Any import or export of goods for personal purposes and not for commercial purposes need not obtain an IEC
- Govt departments and charitable institutions
- It is not mandatory for export or import that the government of India Departments and Ministries and Notified Charitable Institutions to carry out.
FAQs
IE Code is not a tax registration. However, certain customs duties may be levied depending on the product imported or exported.
As trade is not possible without a valid IEC, the penalty levied may be the pay duty depending upon the quantum of the goods.
You can cancel the IE code by initiating a formal request to the DGFT online. On receipt of such intimation, the authorities will cancel it electronically.
Yes. In order to make changes, you need to raise a request with the DGFT and produce the relevant documents to make the modifications. Government charges may be applicable.
Trade License is a license or permission issued by a municipal corporation granting permission to carry on a particular business at a particular address. It ensures that the citizens are not adversely affected by health hazard and nuisance by the improper carrying of trade.