The Import Export Code (IEC) is a unique 10-digit code issued by the Directorate General of Foreign Trade (DGFT) in India. It is a mandatory requirement for all businesses that engage in import and export activities. In this article, we will take a detailed look at the IEC and its importance in international trade.
What is the Import Export Code (IEC)?
The Import Export Code is a registration number issued to businesses by the DGFT, which is responsible for regulating foreign trade in India. The IEC is a unique 10-digit code that is valid for the entire lifespan of the business, and it is required for all imports and exports from India.
Who needs an Import Export Code (IEC)?
All businesses that engage in import and export activities in India must have an IEC. This includes manufacturers, traders, exporters, importers, service providers, and other businesses that engage in foreign trade.
How to apply for an Import Export Code (IEC)?
To apply for an IEC, businesses must complete an application form and submit it to the DGFT, along with supporting documents such as a bank certificate, identity proof, and proof of address. The application can be submitted online through the DGFT website or through a regional DGFT office.
What are the benefits of having an Import Export Code (IEC)?
Having an IEC is essential for businesses that want to engage in international trade. Some of the benefits of having an IEC include:
- Legal requirement: It is mandatory for all businesses that engage in import and export activities to have an IEC.
- Enables international trade: The IEC allows businesses to engage in international trade and expand their reach beyond the domestic market.
- Avail government benefits: Businesses with an IEC are eligible for government schemes such as the Export Promotion Capital Goods (EPCG) scheme, which provides benefits such as reduced import duty rates.
- Open bank accounts: Having an IEC enables businesses to open a current account with a bank for international transactions.
- Better credibility: Having an IEC provides businesses with better credibility and trustworthiness in the international market.
In conclusion, the Import Export Code (IEC) is a crucial requirement for businesses that engage in import and export activities in India. It enables businesses to expand their reach beyond the domestic market and participate in international trade. By obtaining an IEC, businesses can take advantage of government schemes and benefits, enhance their credibility in the international market, and open new avenues for growth and success.