Import Export Code Meaning

Import Export Code Meaning

For every business to successfully transact an import or export transaction, you need to follow specific rules and laws. Import Export Code (IEC number) license is one requirement that a business must complete for an import or export business in India. It is also called the Importer-Exporter code. Let us know about the significance of IEC.

What is Import-Export Code or IEC?

If you are thinking of starting your import-export business in India, then you must need the IEC number. This number is generated by the Directorate General of Foreign Trade (DGFT) in electronic form (e-IEC). DGFT office comes under the Ministry of Commerce of the Government of India.

IEC is a unique 10-digit alpha-numeric code having lifetime validity. It is issued based on the Permanent Account Number (PAN) of the business entity or individual. No person or entity in India shall be allowed to make any import or export without the IEC Code Number unless they are specifically exempted. Similarly, the import or export merchants cannot benefit from the DGFT IEC Code without availing of the code. If any individual is applying for the IEC number, they can do so either in the company's name or in their name directly.


Benefits of IEC registration

Here are a few benefits that you can get if you get IEC registration:

  1. Expand your business - You can expand your business by purchasing and selling products and services in the global market.
  1. Additional benefits - The applicant can receive several additional benefits from DGFT, the Customs department, the Export Promotion Council, etc., based on their IEC registration.
  1. Easy Processing - You can obtain the IEC code registration within 10 to 15 days after submitting the filled application. There is no need to provide any proof of export or import for getting the IEC code. 
  1. No return filing - IEC does not require any return filing. This is valid even for export transactions where you do not have to file any return with DGFT.
  1. No need to renew the certificate - The IEC certificate has lifetime validity; hence you do not have to renew it. Although, you have to update it annually.

Things to know before applying for IEC

  1. You need to pay the application processing fee of ₹500 online (through debit card, credit card, or Net Banking method).
  1. The application may be done on behalf of a Proprietorship, Partnership, Limited Liability Partnership (LLP), Private Limited company or Public Limited Company, Hindu Undivided Family (HUF), Trust, Co-operative society, etc. All the IEC will be issued separately based on the applicant's category.
  1. The entity must have a PAN, bank account, valid address in its name before applying.
  1. For Proprietorship firms, IEC will be issued against the PAN of the proprietor. For others, it would be issued against the PAN of the applicant entity (firm/company). 
  1. There is an online form ANF 2A format that needs to be filed to get IEC at the DGFT portal.
  1. IEC shall not be taken for personal purposes and only for commercial purposes. 





Created & Posted by Pooja

Income Tax Expert at TAXAJ

 

TAXAJ is a consortium of CA, CS, Advocates & Professionals from specific fields to provide you a One Stop Solution for all your Business, Financial, Taxation & Legal Matters under One Roof. Some of them are: Launch Your Start-Up Company/Business, Trademark & Brand Registration, Digital Marketing, E-Stamp Paper Online, Closure of Business, Legal Services, Payroll Services, etc. For any further queries related to this or anything else visit TAXAJ

 

Watch all the Informational Videos here: YouTube Channel

 

TAXAJ Corporate Services LLP

Address: 1/11, 1st Floor, Sulahkul Vihar, Old Palam Road, Dwarka, Delhi-110078

Contact: 8961228919 ; 8802812345 | E-Mail: connect@taxaj.com

    • Related Articles

    • How to Obtain Import Export Code in a Day?

      What is the Import Export Code (IEC)? What is the meaning of the IEC (Import Export Code) License in India? Import Export Code (also known as IEC code) is a 10 digit identification number that is issued by the DGFT (Director General of Foreign ...

    • How to generate Import Export Code?

      An import export code is a unique 10-digit code that is required for every import/export business owner in India. The code is issued by the Director-General of Foreign Trade (DGFT), Ministry of Commerce, and needs no filing or renewal. IEC is ...

    • Import Export Code Registration Documents

      In this age of cut-throat competition, everyone wants to grow their business beyond the limits of the domestic market. However, doing business globally isn’t just a cup of tea for everyone. Before going global, you need to follow several procedures ...

    • Import Export Code Registration Charges

      Fee for IEC Code Registration in India IEC code number registration fee is worth Rs. 250.00 and can be paid via EFT (Electronic Fund Transfer), and submit the IEC Online Application form. For an instant, the physical application containing required ...

    • Import Export Code - Features, Benefits and Registration Process

      Import Export Code - Features, Benefits and Registration Process Import Export Code or IEC is a 10-digit code that a business or a person needs to import/export goods/services. This code is issued by DGFT (Director General of Foreign trade), Ministry ...