Full form of IEC

Import Export Code or IEC is an official listing that provides a ten-digit code to those applicants who run or want to run an import and export business. In India, if someone wants to trade their goods across borders, they would have to register for the IEC. This code is provided by the government’s Department of Foreign Trade (DGTF), Ministry of Commerce to individuals or organizations for their overseas trading.

History of IEC

IEC registration was introduced on 27th of July, 2016 by the Department of Foreign Trade under the policy circular number 15(2004-2009). They also laid down clauses and criteria, the credibility and eligibility of entities applying for the IEC registration.

The department has also provided legal provisions which are given for the IEC Code Number Application in Foreign Trade (regulation), 1993 Ministry of Commerce, Notification number GSR 791 (E) on 30th December 1993.

Eligibility for IEC

Entities looking to import their merchandise to India are required to register an application for IEC. They must also quote their code when clearing the customs. Not to forget banks too require IE code of the organization or the individual if they are sending money abroad.

It is often a common notion that you need to own a business and that company only can hail an IE code. This is not the case, as individual traders and proprietors can also opt for it, if interested.

If you want to export your goods to some other country from India, then they are required to fill in the IEC registration form and get their ten-digit IE code. They are also required to quote their IE code once they get it prior to the shipment being sent overseas. You must also keep this in mind that banks require your IEC if you are a business or an individual while receiving money from abroad.

Salient Features of IEC

1. Your chances to get global recognition and noticeability increases. IEC helps you to expand your ventures as it takes your goods from a local to national and multinational market. The chance of people knowing about your good abroad increases.

2. Our government always tries to help traders in their trade business. If you are registered and have an IE code, then you are eligible for certain government benefits too.
Till this date the department of Foreign Trade and the Export Promotion Council provides benefit schemes to the exporters thereby, encouraging people not only to hop in the bandwagon of trade business but to register for IEC.

3. You do not have to go through the pain of getting your IEC renewed from time to time. The IEC once received is for the lifetime of the applicant which means you do not have to renew it.
This also implies that you have just been given a one-time payment and you can enjoy the benefits for the lifetime. Same implies for import export license.

4. There is no necessary compliance provision for goods traded under IEC. You are not required to produce any transaction details against tax returns regarding this.

5. Aforementioned, you are not required to be a business entity to be able to get an IEC. An individual is equally eligible as a trade organization to get registered for IE code.

Exceptions from IEC

1. Commodities sent or received for personal use are not supposed to apply for IEC.

2. If you are trading goods to/from Nepal or Myanmar and it is travelling from Indo-Myanmar route, as well as, if the transaction price is less than 25,000 Rupees, then you are exempted from IEC.

3. Governments are not required to have an IEC registration.

Requirements to Register for IE Code

1. Current Bank Account
2. Banker Certificate
3. Pan Card
4. The physical application should reach the Department of Foreign Trade within 15 days of online application.
5. An application fee of 250 rupees should be paid.

Wrapping Up

Therefore, the Import Export Code is required by anyone who is looking to kickstart their multinational business.