An Import Export Code (IEC) is a unique identification number required for businesses and individuals engaged in international trade in India.
It is a 10-digit code issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, Government of India.
The IEC serves as a registration mechanism for importers and exporters, facilitating customs clearance and enabling businesses to avail benefits under various government schemes and incentives.
It is mandatory for entities involved in importing or exporting goods and services from India.
Purpose and Benefits
The IEC code is used for several purposes, including:
Customs clearance: IEC is required for clearing shipments at customs ports.
International payments: Banks require IEC to process international trade transactions.
Availing export incentives: IEC is necessary to benefit from export promotion schemes like MEIS (Merchandise Exports from India Scheme) and SEIS (Service Exports from India Scheme).
Enhancing credibility: Having an IEC enhances the credibility of a business in the international market.
Eligibility and Application Process
Any individual or business entity engaged in international trade can apply for an IEC. The application process involves:
Registering on the DGFT website.
Filling out the online application form.
Uploading required documents, such as PAN card, Aadhaar card, and bank details.
Paying the application fee of INR 500.
Validity and Maintenance
The IEC is valid for a lifetime and does not require renewal. However, it is essential to keep the information on the IEC updated, particularly details such as bank information or address changes.