What is IEC code?

What is IEC code ? 

In this modern technology every business or start-up want to grow their business globally or beyond the limit of global market, every start-up want to trade in global market with their own, unique concept, in thought of trading in market we use various techique to reach our products at every corner of country, though doing so is not an easy we have to follow several legal process, with some registration and licence, one of the Registration is IEC code.

An IEC (Import And Export code) is identification number of 10 Digit,which is issued by DGFT (Director General of Foreign Trade) import and Export business, without IEC trade out-side country is not allowded unless they are extempted from taking IEC code, though IEC code plays and very important role in trading globally, thus iec registration becomes very important And necessary documents for importer and exporter.

   IEC can be registered with any entity whether it may be propritorship or Private limited, LLP, OPC etc. with registering IEC the various benefits can be taken through Foreign Trade Policy (FTP) And various government schemes, various tax benefits are also Provided to iec code holder,

When Applying IEC always question come in our mind ?

1. Whether we really require IEC code ?

Ans. Depends on our rquirement if thing of doing business with global market then for doing transaction paying to importer or receving money againts our export, may be to clear our goods from custom becomes necessary for taking IEC code.

2. Whether IEC  Registration is compulsory?

Ans. Please prefer question one, but still if you not required we don't require and we took iec then it's will not affect our business in any case, it is always suggested to take iec and keep though not to miss any golden opportunity or wasting time of regitration and the time of doing business or receiving order from abroad.

2. Doe's we will have to make any annual returns of our IEC code ? 

Ans. No, we will not have to file any returns for it even though we are doing trade importing or exporting goods abroad.

3. Will we have to pay any amount from our income to government in any case of import an export? 

Ans. NO, Until we are not importing or exporting our goods abroad we don't have to pay any amount to government, at the time we start doning import and export we will have to pay tax duty accordingly applicable.

4. Doe's taking iec will make compulsion for importing or exporting ? 

Ans. NO,

The Situation where IEC is Required ? 

1. As a legal documents to be asked by custom officer to importer to clear his shipment.

2. When the Money is send abroad by importer through their Bank.

3. As a legal documents to be asked by custom officer to Exporter to clear his shipment.

4. when money is received by exporter in foreign currency into their bank account direclty by bank.

The Situation where IEC code is not Required

      As per the circular issued by DGFT (Director General of Foreign Trade) IEC is not compulsory for all business, who are registered under companies act or under gst for doing their business, 

The Pan number of the trader or entity itself will be made as the IEC code.

Import And Export code is not required when the goods are imported or exported for personal use. 

Import and Export done by Goverment department or charitable trust does not requir IEC code.