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.
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