The Importer Exporter Code (IEC) is a unique 10-digit identification number assigned by the Directorate General of Foreign Trade (DGFT), functioning under the Ministry of Commerce, Government of India.
Some of the aspects where IEC is essential comprise:
- Clearing goods through customs
- Sending or receiving international payments via banks
- Availing benefits under export promotion schemes
- Improves credibility and legitimacy
IEC can be obtained by:
- Proprietorships
- Partnerships
- Limited Liability Partnerships (LLPs)
- Private or
- Public Limited Companies
- Trusts
- Hindu Undivided Families (HUFs), and
- Societies
The Importer Exporter Code (IEC) is granted by the Directorate General of Foreign Trade (DGFT), a statutory body functioning under the aegis of the Ministry of Commerce and Industry, Government of India. The DGFT is responsible for regulating and promoting foreign trade in India, and the IEC forms an integral part of its trade facilitation framework.
IEC is valid once acquired. However, annual updates are mandatory to keep the code active and compliant.
If IEC is not updated between April and June each year, it gets deactivated automatically. A deactivated IEC cannot be used for import/export until it is successfully updated and reactivated.
Obtaining an Importer Exporter Code (IEC) is a compulsory requirement for any individual or entity seeking to engage in the import or export of goods into or from India, except in cases where specific exemptions are granted.
Absolutely. Individuals acting as proprietors can apply for IEC using their PAN and bank details. They do not need to own a registered company to be eligible.