What's the use of Import Export Code?

What's the use of Import Export Code?

For the purpose of importing or exporting goods and services from India it is required to obtain Import Export Code (IEC). Import Export Code is issued by the Director General of Foreign Trade (DGFT), Ministry of Commerce and Industries, Government of India.

An application is required to be submitted to the Directorate General of Foreign Trade along with the necessary documents and requisite fees. After the submission of an application, DGFT will issue the Import Export Code within 15-20 working days.

It is issued for the lifetime of the entity. It does not requires renewal. It can be used for all its import or export transactions.

Import Export Code (IEC) contains 10 digit number which is issued by the authority. It is necessary to obtain by every person involved in international trade of Export and Import or we can say that every person who is engaged in the business of selling of goods or services in international markets.

In any business which involves foreign transfer it is required to obtain an IEC number. It is used for clearing the goods from custom authority. The size of the business doesn’t matter, without IEC number no seller can import or export goods.

Here are the following advantages of IEC:

• It is the primary proof for a firm as an Importer/ Exporter in India.

• It is submitted to various government authorities to obtain benefits in respect of their export and import from customs, DGFT, Export Promotion Council etc.

• It acts as a license for Importing and Exporting of goods.

• Through IEC number, Goods are cleared from the custom authorities.

• It provides dealer code details along with the details of the port from which goods are being imported and export.

• With the help of IEC, it reduces the transport of illegal goods.

• To obtain IEC code the full information regarding the goods that will be imported or exported is need to be furnished.

• IEC number shall be valid for all the divisions / units and factories indicated on the IEC number.


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