Import Export Code License
An Import Export Code (IEC) license is a unique 10-digit number issued by the Directorate General of Foreign Trade (DGFT), which is part of the Ministry of Commerce and Industry in India. This code is mandatory for individuals or businesses that want to engage in the import or export of goods and services from India to other countries or vice versa.
Here are some key points to understand about the IEC license:
1. Mandatory Requirement: If you intend to engage in import or export activities, an IEC license is compulsory. It is required for customs clearance and international trade transactions.
2. Individuals and Businesses: Both individuals and businesses can apply for an IEC code. It is not limited to corporations; even sole proprietors or small businesses can obtain it.
3. No Restriction on Goods/Services: The IEC code is not limited to any particular category of goods or services. It can be used for any legitimate international trade activities.
4. Application Process: The application for an IEC license can be made online through the DGFTs e-commerce portal. You will need to provide certain documents, including identity and address proof, to complete the application.
5. Validity: Once issued, an IEC code is valid for the lifetime of the entity, and there is no need for renewal. However, any changes in the details of the entity (such as address or ownership) may require updating the code.
6. Multiple Codes: An entity can apply for multiple IEC codes if it has more than one place of business. However, having multiple codes does not exempt an entity from its obligations under the law.
7. No Compliance: Failure to obtain an IEC license can result in legal consequences, including penalties and restrictions on import/export activities.
8. Registration with Customs Authorities: After obtaining an IEC code, you need to register it with the relevant customs authorities for customs clearance.
9. Bank Account: Some banks may require an IEC code for transactions related to foreign exchange. So, if you plan to engage in international trade, it is often necessary to have an IEC code.
10. Exemptions: There are certain exemptions for small-scale industries and specific categories of goods, but these exemptions are subject to conditions and may change over time.
It is important to note that the specific requirements and procedures for obtaining an IEC code may change over time. Therefore, it is advisable to consult the latest guidelines from the DGFT or seek legal advice from a professional to ensure compliance with current regulations if you plan to engage in import or export activities in India.