What is IEC?
An Importer -Exporter Code (IEC) is a key business identification number which is mandatory for export from India or Import to India. No export or import shall be made by any person without obtaining an IEC unless specifically exempted. For services exports however, IEC shall not be necessary except when the service provider is taking benefits under the Foreign Trade Policy.
Consequent upon introduction of GST, IEC being issued is the same as the PAN of the firm. However, the IEC will still be separately issued by DGFT based on an application. The nature of the firm obtaining an IEC may be any of the following- Proprietorship, Partnership, LLP, Limited Company, Trust, HUF, Society.
Prerequisites
- IEC may be applied on behalf of a firm which may be a Proprietorship, Partnership, LLP, Limited Company, Trust, HUF, Society.
- Firm must have a PAN, bank account in the name of the firm and a valid address before applying.
- Address may be physically verified by the DGFT on issuance of the IEC.
Uses of the IEC
It serves as a permit to expand your business in the international market. The IEC is a unique code that does not expire.
When do you need IEC?
- If an importer has to declare his shipments, the customs authorities need it.
- If an importer sends money abroad via banks, then the bank needs it.
- If an exporter has to send his shipments, then it is necessary at port
- If the bank receives money in foreign currency directly into his bank account, the bank will ask for it.
Exemptions
The following category of people cannot take IEC registrations
- Import and export of goods for personal use
- Import and export by the central Government for defense purposes or other lists specified under Foreign Trade Order, 1993.
Precautions
- No need to apply for additional IEC in India against the same PAN
- You need to be specific while providing information about the business. The applicant can be punished for delivering actionable and incomplete information.
- It is essential to update business information once in every year after receiving e-IEC. The update shall be provided on the DGFT website.
Obtaining IEC becomes mandatory for commencing import-export business. Online IEC Registration Process makes the process more simplified and hassle-free. There is no need to file for the renewal of IEC because the code has lifetime validity. DGFT has various regional offices in the whole of India.
