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IEC (IMPORT or export code)

Importer - Exporter Code (IEC)

An Importer - Exporter Code (IEC) is a 10-digit alphanumeric code issued by the Directorate General of Foreign Trade (DGFT), Government of India. It is a mandatory requirement for any person or entity who wishes to import or export goods or services from India.

Benefits of having an IEC code

It facilitates easy clearance of goods at customs.
It enables businesses to avail various benefits under the Foreign Trade Policy of India.
It helps to establish the credibility of a business in the international market.
It is required for opening Letters of Credit (LCs) and other trade-related transactions.

Who needs to apply for an IEC code?

Any person or entity who wishes to import or export goods or services from India must apply for an IEC code. This includes:

Individuals
Proprietorships
Partnerships
Companies
Limited Liability Partnerships (LLPs)
Trusts
Societies
Government agencies

Exemptions from IEC code

The following categories of businesses are exempt from obtaining an IEC code:

Exporters of handicrafts and handloom products worth less than ₹25 lakh per annum
Exporters of services, unless they are claiming benefits under the Foreign Trade Policy
Importers of goods for personal use

How to apply for an IEC code

The following documents are required to be submitted along with the application:

PAN card of the applicant
Address proof of the applicant
Bank account details of the applicant
MOA and AOA (for companies)
Partnership deed (for partnerships)
Trust deed (for trusts)
Society registration certificate (for societies)

Processing time for IEC code application

The IEC code is usually issued within 2-3 working days from the date of submission of the application.

Validity of IEC code

The IEC code has a lifetime validity.

How to use an IEC code

The IEC code must be mentioned on all import and export documents, such as invoices, packing lists, and bills of lading. It is also required for obtaining import and export licenses, and for opening Letters of Credit (LCs).

Penalties for not having an IEC code

Any person or entity who imports or exports goods or services from India without having an IEC code is liable to be fined up to ₹1 lakh.

Additional information

The IEC code is a unique number and cannot be transferred to another person or entity.
Any changes in the business name or address must be intimated to the DGFT within 30 days of the change.
The IEC code can be suspended or cancelled by the DGFT in case of any violation of the Foreign Trade Policy of India.

Conclusion

The IEC code is an important document for any business that wishes to import or export goods or services from India. It is a mandatory requirement and offers several benefits to businesses. The application process for an IEC code is simple and the code is issued within a short period of time.

Examples of how IEC code is used

An IEC code is required to clear goods at customs.
An IEC code is required to open Letters of Credit (LCs).
An IEC code is required to avail benefits under the Foreign Trade Policy of India.
An IEC code is required to participate in international trade fairs and exhibitions.
An IEC code is required to obtain export licenses for certain commodities.

Here are some examples of how IEC code is used in real life

A company that exports garments needs to have an IEC code in order to ship its products to other countries.
A business that imports machinery from China needs to have an IEC code in order to clear the goods at customs.
A software company that provides IT services to clients in the US needs to have an IEC code in order to receive payments from its clients.
A travel agency that organizes tours for foreign tourists needs to have an IEC code in order to provide its services.

Amendments

An amendment in an IEC code is a change to the information that is registered with the DGFT. This can include changes to the business name, address, contact information, or authorized signatories. Amendments can also be made to reflect changes in the business structure, such as a merger or acquisition.

To amend an IEC code, you need to purchase the order. The order must be accompanied by the required documents, such as a copy of the PAN card and address proof. The DGFT will process the application and issue an amended IEC code within 2-3 working days.

There are a few reasons why a business might need to amend its IEC code:

Change in business name or address
Change in authorized signatories
Change in business structure, such as a merger or acquisition
Correction of errors in the IEC code
To add or remove products or services that the business imports or exports

It is important to note that amendments to the IEC code are not mandatory. However, it is advisable to keep the IEC code updated with the latest information to avoid any problems during import or export transactions.

Here are some examples of IEC code amendments:

A company changes its name from XYZ Exports to ABC Exports. It will need to amend its IEC code to reflect the new name.
A company changes its address from Delhi to Mumbai. It will need to amend its IEC code to reflect the new address.
A company adds a new authorized signatory to its board of directors. It will need to amend its IEC code to add the new signatory.
A company merges with another company. It will need to amend its IEC code to reflect the new merged company name and structure.
A company discovers an error in its IEC code, such as a typo in the address. It will need to amend its IEC code to correct the error.
A company starts exporting a new product that is not listed on its IEC code. It will need to amend its IEC code to add the new product.

If you have any questions about amending your IEC code, you should contact us.

Overall, the IEC code is an important document for any business that is involved in international trade. It is a mandatory requirement and offers several benefits to businesses