Introduction Of Import/Export Licence (IEC - Import Export Code)
You are right. For individuals or companies engaging in import and export activities in India, the Import Export Code (IEC), also known as the Importer-Exporter Code, is a requirement. For importers and exporters in India, the IEC is a 10-digit alphanumeric code that acts as a special identifying number.
The Directorate General of Foreign Trade (DGFT), a government organization in charge of promoting and regulating foreign trade in India, is in charge of handling the issuing and regulation of the IEC. Unless it is suspended or revoked by the DGFT, the IEC is required for both importers and exporters and is good for life.
Without an IEC, importers are unable to complete transactions because the code is necessary for customs clearance and other related processes. Similar to this, exporters require the IEC in order to benefit from the DGFT's various export promotion programs, including duty drawbacks, export incentives, and more. A bank account in the business's name must be opened to conduct foreign commerce, and this requires the IEC.
Individuals or companies must apply to the DGFT or its regional offices to receive an IEC. The application procedure normally includes providing the required paperwork, including the application form, a bank certificate, and pertinent supplemental paperwork. The DGFT issues the IEC to the applicant after processing and approving the application.
The particular requirements and methods for acquiring an IEC may change over time, therefore it's necessary to keep up with the most recent DGFT guidelines and regulations or seek expert guidance to ensure compliance with the standards in effect.
The Benefits of IEC Registration
(1) Expansion of business
IEC assists you in taking your services or product to the global market and growing your businesses.
(2) Availing several benefits
The Companies could avail several benefits of their imports/ exports from the DGFT, Export Promotion Council, Customs, etc., on the basis of their IEC registration.
(3) No return filing
IEC does not require the filing of any returns. Once allotted, there isn’t any requirement to follow any sort of process for sustaining its validity. Even for export transactions, there isn’t any requirement for filing any returns with DGFT.
(4) Easy processing
It is fairly easy to obtain IEC code from the DGFT within a period of 10 to 15 days after submitting the application. There isn’t any need to provide proof of any export or import for getting IEC code.
(5) No need for renewal
IEC code is effective for the lifetime of an entity and requires no renewal. After it is obtained, it could be used by an entity against all export and import transactions.