Import Export Code (IEC)
Import Export Code (IEC) is a 10 digit identification number which is issued by the DGFT (Director General of Foreign Trade), Department of Commerce, Government of India. It is also called the Importer Exporter Code. It is compulsory to obtain this code by companies and businesses that are starting a business that involves import and export in the Indian Territory. It is not impractical to do an export or import business without this code.
There is a complete process to obtain the Import Export Code. A business has to follow some regulations to obtain this number. After fulfilling all the Terms & Conditions, you can obtain the Import export code(IEC) from the DGFT offices. DGFT has several regional offices throughout the country. It can be obtained from the nearest zonal or regional office.
How to obtain IEC code?
Processes to be followed by a business to obtain Import Export Code.
- Fill the application Form No. ANF 2A to obtain Import Export Code(IEC). Form is available on DGFT website.
- Documents such as Passport size photo, bank account number and PAN Card is required to apply for an IEC.
- Fill up sections A, B, and D of the form, sign each page of the application form and submit to obtain a new code Import Export code(IEC).
- Send an IEC license fee of Rs.250 along with the application form. The money has to be paid through EFT (electronic fund transfer) directly to DGFT.
- In case of offline submission, pay through a demand draft for Rs.250 to the Regional Office of DGFT.
Benefits of IEC Registration
Globalization & Growth of Business: IEC helps you in taking your services or products to the global market and grow your businesses.
Incentive from the government: Exports are promoted by the government so several incentives can be availed by a business after taking registration from DGFT, Export Promotion Council (EPC), Customs, etc.
Easy process to obtain registration: It is very easy to obtain IEC code from the DGFT within a period of 10 to 15 days of filing the application form. It is not necessary to provide any type of proof of export or import for getting IEC code.
Unlimited validity: IEC code is effective for the lifetime of an entity and requires no renewal. After obtaining the code, it can be used against all export and import transactions.
Cases where the Import Export Code (IEC) is not mandatory
As per the latest circular, Import Export Code(IEC) is not necessary for traders who are registered under the Goods & Services Tax(GST). In all such cases, the PAN of the trader shall be considered as the IEC code for import and export. If goods are exported or imported for personal purposes Import Export Code (IEC) isn’t required to obtain.
Export/ Import made by the Government of India Departments and Ministries, Notified Charitable institutions need not require getting Import Export Code.
