Importer Exporter code popularly known as IEC Code is a business identification number which is mandatory for Exports and Imports. IEC Code is mandatory if anyone wants to do import to or export from India. IEC is a unique 10-digit code which is same as PAN of the entity. Only one IEC code can be issued against single PAN
This document covers
- Who issue Importer Exporter Code?
- Who can apply for IEC?
- Circumstances where IEC is Required
- Benefits of IEC Code
- Category of Exporters who are required to take IEC
- Preferred Sector of Operations for application of IEC Code
- Renewal of IEC Code
1. Who issue Importer Exporter Code?
Director General of Foreign Trade (DGFT), an attached office of the Ministry of Commerce and Industry, Government of India issues IEC Code.
2. Who can apply for IEC?
The following persons can apply for Importer Exporter code.
- Limited Liability Partnership
- Private Limited/Public Limited
- One Person Company (OPC)
- Trust/Society/Government undertaking
3. Circumstances where IEC is Required
The following are the situations where IEC Code is required.
- Import of Goods: If the Importer wants to clear the shipment from customs authority, IEC is required
- Import of Goods/Services: When the importer wants to transfer the money for imports made, Bank needs IEC Code.
- Export of Goods: IEC is required for export of shipments from India.
- Export of Services: If the exporter of services is receiving amount in foreign currency, IEC code is required to transfer the money to his account directly. IEC is also required if the service provider is taking benefits under the foreign trade policy or dealing with specified services or technologies
4. Benefits of IEC Code
- Expansion of Business: IEC helps in expansion of business as the products or services reaches to global market.
- Incentives from DGFT: The taxpayers registered under DGFT can avail certain benefits from DGFT under foreign trade policy
- No Returns: IEC does not require the filing of any returns.
- Easy processing: The process to get IEC Code is very easy and it takes 1 day to get IEC Certificate.
5. Category of Exporters who are required to take IEC
The following are the category of exporters who are required to take IEC
- Merchant Exporter
- Manufacturer Exporter
- Merchant cum Manufacturer Exporter
- Service Providers
6. Preferred Sector of Operations for application of IEC Code
The following are the preferred sector of operations which the importer or exporter needs to select while applying for IEC Code
- Chemicals And Allied Products
- Electronic Products
- Engineering Products
- Fish and Marine Products
- Food Products
- Leather Products
- Plastic Products
- Sport Goods
- Textile, Readymade garments, Hosiery and Knitwears
- Miscellaneous Products
- Whole sale Trading
- Gems and Jewellery
7. Renewal of IEC Code
Earlier IEC registration is valid for lifetime. But w.e.f 12/02/2021, IEC code needs to be renewed every year between April to June. June 30 is due date for renewal of IEC Code