Import Export Code (IEC) is issued by the Director General of Foreign Trade, Department of Commerce. It is a 10 digit number which is required to obtain by every person involved in international trade of Export and Import or in other words we can say that it is required to be obtained by every person who is engaged in the business of selling of goods or services in the international market. Each type of business which involves foreign transfer is required to obtain an IEC number. IEC Registration can be done digitally hence there is no need to visit DGFT.
Businesses can benefit through import and export business to unlock the international market for their product or services they are involved in. IEC code is the main requirement to enter into international market which supports the growth and development of the business to a certain standard. Here are the Benefits or Advantages of IEC Registration for Businesses:
As said, it is the primary requirement for the import into and export from India for the goods and specified services which enables the businesses to unlock the opportunities across the globe in international business market. It increases the global reach of the business and hence opens door for growth and expansion.
The Import – Export Code can be obtained by any business entity or an individual. Below are the mandatory documents that are required for the Import Export Code Registration. PAN Card of the Applicant Cancelled Cheque Address proof of the Business
The Code is provided based on the Permanent Account Number of the business organisation. Therefore, the registration is not required based on place of business rather, a single business entity may require only one registration. As and when the business is dissolved, the registration is also revoked or surrendered.
IEC registration is permanent registration which is valid for life time. Hence there will be no hassles for updating, filing and renewal the IEC registration. It is valid till the business exists or the registration is not revoked or surrendered.
IEC code has huge benefit for importers as well as exporters. The registered business entities would be able to avail benefits in form of subsidies or otherwise declared by the Customs, Export Promotion Council or other authorities. After filing LUT under GST, the exporters can make exports without payment of taxes. In case the exports are made with payment of taxes, the exporter is able to claim refunds of the amount paid as tax.
Unlike other tax registrations, the importer or exporter does not require to fulfil any specific compliance requirement such as Annual Filings or return filings. The code possesses no need of compliance after registration.