Overview
Any business that undertakes import and export of services and goods from the country must obtain an Import Export Code (IEC) from the Government. The key advantage of registering for an IEC is that it is valid for a lifetime and no renewal is necessary for the Code. Not just business entities, even individuals can apply for IEC. The rationale behind IEC is to regulate certain restricted sectors from the international trade point of view like nuclear weapons, automatic guns. In short, no importer/exporter can operate in India without getting the IEC.
At following instances the IE Code would be required:
- When an importer has to clear his shipments from the customs then it’s needed by the customs authorities.
- When an importer sends money abroad through banks then it’s needed by the bank.
- When an exporter has to send his shipments then it’s needed by the customs port.
- When an exporter receives money in foreign currency directly into his bank account then submission of IEC is required by the bank.
One doesn’t need to be a registered entity to apply for import export code; you can apply even as an individual.
Important Note: As per the recent notification from the DGFT, One needs to renew / update the IEC License every year during April to June.