Importer Exporter Code (IEC)
is basically import export license
granted by the Directorate General of Foreign Trade (DGFT). Any person or body
corporate who is willing to expand their business and explore the international
market, are required to acquire IEC.
Anyone can make an
application to the DGFT directly along with the necessary documents or one can
apply for IEC code online and
digitally attached all the required documents there.
It is a very basic
registration and government fee charged for IEC is also very minimal. As one is
only required to pay 500 rupees for the same.
Who can apply for IEC
Anyone engaged in any
business, agriculture, manufacturing etc. can apply for Importer Exporter Code.
Such person can be any of the following:
-
Individual /
Proprietor
-
Partnership Firm
-
LLP
-
Private/ Public
Limited Company, or any other entity.
Features of IEC
1.
It is mandatory to
apply for IEC before initiating import/Export. There is no concept of
provisional registration for Importer Expo
2.
IEC has lifetime
validity, it does not have an expiry date unless surrendered.
3.
IEC will be valid for
all the divisions / units/ factories/ branches which are mentioned at the time of
application. There is no need to acquire different IEC for different units or
branches.
Is IEC mandatory for import/export
No, it is not a mandatory
requirement to apply for IEC, there are certain exemptions to the same.
Following are a few scenarios when it is not mandatory to get IEC registration:
Scenario 1: When
we say that before importing and exporting you are required to apply for Import
Export Code, it does not mean that all kinds of import / export attract this
requirement. If the import or export is of personal nature and is not
associated to any business, agriculture, manufacturing activity etc. then in
such cases there is no liability to apply for IEC beforehand.
Scenario 2: If
any import or export is affected by any government departments, ministries or
any other notified charitable organizations, then they are not required to
apply for IEC registration.
As said above import and export code license is very useful and interesting
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