WHAT IS IMPORT EXPORT CODE ?
An Import Export Code (IEC) is a 10-digit registration number issued by the Directorate General of Foreign Trade (DGFT) in India. It is mandatory for businesses or individuals engaged in import and export activities. The IEC facilitates international trade by identifying the entity and is used in customs clearances and foreign trade transactions.
To obtain an IEC, applicants must submit specified documents to the DGFT, including PAN, bank details, identity proof, and address proof. Once issued, the IEC does not require renewal and is valid for the entity’s lifetime. It enables businesses to engage in importing goods into India and exporting goods from India without restrictions, except for goods subject to specific export policy restrictions.
The IEC is essential for participating in global trade, enabling businesses to expand their markets, source raw materials globally, and enhance competitiveness by accessing international markets seamlessly.
REQIURED DOCUMENTS FOR IEC REGISTRATION
PAN CARD
A PAN card (Permanent Account Number) is a unique 10-digit alphanumeric identifier issued by the Income Tax Department in India.
IDENTITY CARD
An identity card is an official document verifying a person's identity, often issued by government authorities or institutions.
ELECTRIC BILL / RENT AGREEMENT
An electric bill is a statement detailing electricity usage and charges. A rent agreement outlines terms between tenant and landlord.
CANCEL CHEQUE
A cancelled cheque is a check where "CANCELLED" is marked across it, used for verification of bank account details.
BENEFITS OF IMPORT EXPORT CODE
The Import Export Code (IEC) offers several benefits to businesses involved in international trade. Firstly, it is mandatory for importing and exporting goods, facilitating smooth customs clearance and compliance with regulatory requirements. Having an IEC ensures that businesses can legally engage in cross-border transactions without any hassles.
Secondly, the IEC helps businesses expand their market reach globally. It allows companies to explore new markets for sourcing raw materials, machinery, or finished goods, thereby promoting competitiveness and enhancing product quality through access to diverse suppliers and manufacturers worldwide.
Furthermore, the IEC enables businesses to participate in international trade exhibitions, fairs, and conferences, fostering networking opportunities with potential overseas buyers, suppliers, and partners. This can lead to collaborations, joint ventures, and strategic alliances beneficial for business growth and expansion.
Additionally, the IEC facilitates availing benefits under various government schemes and incentives aimed at promoting exports, such as duty drawback, export promotions, and subsidies. It also simplifies the process of obtaining licenses or permits required for specific export-import activities.