Importer -Exporter Code
The Importer -Exporter Code (IEC) is a key business identification number which is mandatory for Exports or Imports. No person shall make any import or export except under an IEC Number granted by the DGFT. In case of import or export of services or technology, the IEC shall required only when the service or technology provider is taking benefits under the Foreign Trade Policy or is dealing with specified services or technologies- IEC code consultancy consultants for IEC code
The nature of the firm obtaining an IEC may be any of the follows- “Proprietorship, Partnership, LLP, Limited Company, Trust, HUF and Society.” Consequent upon introduction of GST, IEC number is the same as the PAN of the firm. The IEC separately issued by DGFT.
Benefits of Import Export Code
Diversification of Business
One of the main benefits of applying for IEC is to expand business opportunities. This can achieved not only through exports, but also imports into India. Any entrepreneur or company can have seamless experience without any compliance burden.
Registering under the IEC system would automatically provide the business with benefits. Any form of compliance related provisions can adhered by the business. Apart from this, there would be certain schemes which would provide benefits to businesses.
No Requirement to File Returns
No returns are required to filed under this system. Hence one the code is assigned there is no requirement to prove the certification’s legitimacy by filing of returns.
Authorised by Government
When carrying out exports from India, products which are shipped would certified as per the requirements of the DGFT. Hence through this process, increased reputation can achieved.
An individual carrying out the process of imports and exports would require to secure the IEC certification.
A firm of partners would also require taking this certification, if they are exporting and importing products.
When is Import Export Code Registration Require?
- For Clearing Shipments of the importer from customs authorities.
- When remitting money abroad through authorised banks, banks require this code.
- Exporting Shipments abroad.
- When the exporter receives inward remittance, then this code is requireby the bank.
- For Food Licensing and FSSAI registration this code is require.
- For APEDA registration this code is require.
- Any form of subsidy availed by the exporter then this code would be require.
Characteristics of the Import Export Code
- Mandatory Requirement
- Legal Treatment and Evidences
- Life Time Validity
- IEC registration is require to comply with law
- Required for foreign Bank Transfer
- All Entities can use this code
Process of Registering for IEC
- Preparation of application
- Processing the application
- Payment of IEC Fees
- Issuing Code