Import Export Code (IEC) is a 10-digit unique identification number issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India, to Indian companies or individuals for facilitating international trade. It’s mandatory for businesses engaged in import and export activities.
Followings are the Key Features of IEC:
- Legal Requirement: IEC is a statutory requirement under the Foreign Trade Policy of India. Any person or entity engaged in import or export of goods or services must obtain an IEC from DGFT.
- Unique Identification: Each IEC is unique and is assigned to a specific importer or exporter. It serves as a primary identification number for all foreign trade transactions.
- No Requirement for Renewal: Unlike some other licenses, IEC does not require renewal. Once obtained, it is valid for the lifetime of the entity or until surrendered or cancelled. As per the latest rules and norms, from the 12th of February 2021, every IEC holder business is mandated to renew the IEC code online as per chapters 1 and 2 of the policy of Foreign Trade. Failing to do this can lead to suspension and cancellation of your IEC certificate. As a result, every business holder has to renew their Import and Export code license every year.
- No Restrictions on Goods: IEC is applicable for all types of goods and services unless otherwise restricted under the Foreign Trade Policy or any other law.
- Use in Customs Declarations: IEC is used in customs declarations for both import and export shipments. It helps customs authorities track and monitor international trade transactions.
Import Export Code (IEC) is a crucial requirement for businesses engaged in international trade. It streamlines the import-export process, facilitates customs clearance, and ensures compliance with foreign trade regulations. Obtaining an IEC enables businesses to expand their global presence and participate in the international marketplace.