IEC(Import Export Code) Registration

The Import Export Code (IEC) is a 10-digit alphanumeric code that is mandatory for anyone looking to start an import or export business in India. It is issued by the Directorate General of Foreign Trade (DGFT), which operates under the Ministry of Commerce and Industry, Government of India.Think of it as a primary license that allows you to participate in the international market. No person or entity can legally conduct import/export activities without obtaining an IEC, unless specifically exempted.

Who Needs IEC Registration?

Generally, any individual, company, or organization involved in the following needs to obtain an IEC:

• Businesses involved in importing goods into India for commercial purposes.
• Businesses involved in exporting goods from India.
• Service providers exporting services from India, especially when claiming benefits under the Foreign Trade Policy.
• Banks require IEC for processing international trade-related transactions.
• Customs authorities need the IEC to clear import and export shipments.

The following types of entities can apply for IEC Registration:

• Sole Proprietorship
• Partnership Firm
• Limited Liability Partnership (LLP)
• Private Limited Company
• Public Limited Company  
• Trust
• Hindu Undivided Family (HUF)
• Society

Benefits of Obtaining IEC Registration:

Having an IEC opens up numerous opportunities and simplifies the process of engaging in international trade:

• Global Market Access: It allows your business to tap into the international market, expanding your reach and potential for growth.
• Legal Requirement: It's a mandatory requirement for carrying out import and export activities, ensuring compliance with the law.
• Access to Government Schemes: Exporters with an IEC can avail various export promotion schemes and incentives offered by the DGFT, Export Promotion Councils, and other government bodies.
• Ease of Customs Clearance: It streamlines the customs procedures for your shipments, leading to faster and more efficient clearance.
• Simplified Documentation: The IEC serves as a primary identification for all your import/export related documentation.
• No Renewal Required: Once obtained, the IEC has a lifetime validity and does not require periodic renewal (though annual updates are mandatory).
• No Export Obligation (for new entrants): New businesses entering the export market are generally not subject to any mandatory export obligations based solely on obtaining an IEC.
• Enhances Business Credibility: Having an IEC adds to the credibility and trustworthiness of your business in the international market.
• Facilitates Foreign Currency Transactions: Banks require the IEC for processing international payments and receipts.