The Import and Export Code (IEC) is a 10-digit identifying number provided by India's Directorate General of Foreign Trade. For companies involved in international trade, it is an absolute necessity that makes it easier for products and services to be imported and exported.
The IEC serves as an essential document for customs authorities, allowing for smooth cross-border transactions. The IEC, which is governed by the overseas commerce (Development and Regulation) Act of 1992 and the Foreign Trade Policy, acts as a complete record that documents a business entity's participation in overseas commerce.
It is critical in monitoring and regulating the cross-border movement of commodities and services, contributing to the transparency and efficiency of India's international commerce environment.
Obtaining an Import Export Code (IEC) provides various benefits to enterprises engaged in international trade. For starters, it provides a unique identifier, which is required for customs clearance and for importing or exporting goods.
The IEC makes transactions simple, allowing firms to increase their global reach. Furthermore, it boosts reputation, establishing trust in overseas clients and partners. Businesses that have an IEC can take use of a variety of benefits, such as government initiatives, incentives, and subsidies targeted at increasing international trade.
It simplifies documentation processes, reducing the difficulties of cross-border operations. Furthermore, an IEC is required for creating a foreign bank account, which facilitates smooth financial transactions. Obtaining an IEC is, in essence, a critical step for organizations looking to engage in seamless and compliant international commerce activities.
Display the IEC prominently at the company premises once it has been obtained.
Notify the Directorate General of Foreign Trade (DGFT) immediately of any changes in business details, address, or key staff.
Ensure compliance with all necessary international trade legislation and guidelines.
Renew the IEC according to the renewal period, which is commonly every 1 to 5 years.
Maintain detailed records of foreign transactions, imports, and exports.
If the company plans to close, notify the DGFT in writing of your desire to surrender the IEC.
Complete the surrender application via the DGFT portal, supplying all essential information.
Pay off any outstanding debts or commitments related to the IEC.
Obtain a closure certificate from the DGFT, which confirms the IEC's closure.
Take down the IEC display from the company's workspace.