Import-Export Code (IEC) License
What is Import-Export Code (IEC)?
The Import-Export Code (IEC) License is an official document issued by the government of a country to individuals or businesses that wish to engage in import and export activities. This license serves as a unique identification number for the holder and is mandatory for any entity involved in cross-border trade.
The IEC License plays a crucial role in international commerce as it facilitates the smooth flow of goods and services across borders while ensuring compliance with the country’s regulations and laws. It serves as a means to track and regulate imports and exports, allowing the government to monitor and control the movement of goods for various purposes such as economic analysis, taxation, and national security.
The IEC License is essential for various business activities, including engaging in import/export transactions, participating in international trade exhibitions, applying for government benefits or incentives related to foreign trade, and opening bank accounts specifically for international transactions. It also serves as proof of a legitimate business entity, enhancing the credibility and trustworthiness of the holder in the global market.
Check out the IEC License Video
What are the Benefits of an Import-Export Code (IEC) License?
Global Market Access
The IEC License enables businesses to access the global market and engage in cross-border trade. It allows them to import goods from other countries for domestic consumption or export products to international markets, expanding their customer base and increasing business opportunities.
Legitimacy and Credibility
Having an IEC License enhances the legitimacy and credibility of a business in the international trade arena. It serves as proof that the entity is registered with the government and adheres to the regulations and standards set for import and export operations.
Expansion of Product Range
With an IEC License, businesses gain the flexibility to explore a wider range of products for import or export. They can diversify their offerings, meet market demands, and capitalize on emerging trends or lucrative opportunities in different countries.
Access to Government Benefits and Incentives
Many governments offer specific benefits and incentives to businesses engaged in import and export activities. These benefits may include subsidies, tax exemptions or reductions, financial assistance programs, or preferential treatment in certain trade agreements.
Participation in International Trade Events
The IEC License enables businesses to participate in international trade exhibitions, fairs, and conferences. Such events provide a platform to showcase products, network with potential buyers and suppliers, and stay updated with the latest industry trends and innovations.
Banking and Financial Transactions
Financial institutions often require an IEC License to open bank accounts dedicated to international trade transactions. Having an IEC License facilitates smooth financial operations related to import and export, including receiving payments from overseas buyers or making payments to foreign suppliers.
Why Import-Export Code (IEC) License is Required?
The Import-Export Code (IEC) License is required for several reasons related to the regulation and control of import and export activities. The primary reasons for the necessity of an IEC License are as follows:
Identification: The IEC License serves as a unique identification number for individuals or businesses engaged in import and export operations. It enables the government and relevant authorities to track and monitor cross-border trade activities effectively.
Compliance with Regulations: Obtaining an IEC License ensures compliance with the import and export regulations set by the government. It establishes that the holder operates within the legal framework and follows the prescribed procedures for international trade, including customs requirements, documentation, and licensing conditions.
Control over Imports and Exports: The IEC License allows the government to exercise control over imports and exports for various purposes, such as economic analysis, trade balance, national security, and protection of domestic industries. It enables authorities to monitor the flow of goods, implement trade policies, and safeguard the interests of the country.
Statistical Analysis: The IEC License facilitates the collection of accurate and comprehensive data related to import and export activities. Governments utilize this data for economic analysis, policy formulation, and planning. It aids in understanding trade trends, identifying growth sectors, and evaluating the impact of international trade on the economy.
Taxation and Customs Duties: The IEC License plays a crucial role in the assessment and collection of taxes and customs duties on imported and exported goods. It ensures that businesses fulfill their tax obligations, helps prevent tax evasion, and contributes to government revenue.
National Security and Regulation: The IEC License assists in maintaining national security and regulating the movement of goods across borders. It allows authorities to monitor sensitive goods, prevent illegal activities such as smuggling or unauthorized exports, and implement necessary controls to protect the country’s interests.
Facilitating International Trade: The IEC License serves as a prerequisite for engaging in international trade. It establishes the credibility and legitimacy of businesses involved in import and export operations, fostering trust among international partners, buyers, and suppliers. It also enables businesses to access various benefits, incentives, and opportunities related to foreign trade.
Who can get Import-Export Code (IEC) License?
Agriculture Forestry & Fishing
Aerospace
Basic Metal & Fabricated Metal
Chemical Products and Fibers
Coke & Refined Petroleum Products
Automotive Industry
Shipbuilding
Pharmaceuticals
Nuclear Fuel
Mining & Quarrying
Machinery
Construction
Document Required for Import-Export Code (IEC) License
Role of Shamkris and Process of Import-Export Code (IEC) License
Shamkris adopts a results-oriented approach to compliance with mandatory licence requirements in the organization. A simple and guidance methodology help organisation to achieve licence in a timely manner and cost-effective. Shamkris support 100% in advisory, Guidance, Compliance with respect to license requirements to obtain approval.
The License process described below:
Advisory for the document required
Preparation of documents as per application & list of documents.
Application File
Inspection by the department if required
Liason department
Yearly Compliance if Applicable
Renewal when due
Who can issue the Import-Export Code (IEC) License?
FAQ
- Step 1: Go to the DGFT Website.
- Step 2: Then You need to Go to the Services tab.
- Step 3: Enter your PAN number (A Person/if any Company PAN Card)
- Step 4: Enter your details (As Mentioned on PAN Card)
- Step 5: Enter your mobile number to get the (OTP) verification process.
To check whether your IE code has reached DGFT head quarters and the correctness of your IE code details, Click IE Code @ DGFT button.
IEC Code stands for the Import Export Code which is mainly required for the person who wants to export the goods or services to other countries from India. its has been allotted by the DGFT. … IEC Code is required only in the case of “specified” service or “specified” technology.