IEC Registration- Import Export Code
The Importer -Exporter Code (IEC) is a key business identification number which is mandatory for Exports or Imports.
No person shall make any import or export except under an IEC Number granted by the DGFT.
In case of import or export of services or technology, the IEC shall be required only when the service or technology provider is taking benefits under the Foreign Trade Policy or is dealing with specified services or technologies.
The nature of the firm obtaining an IEC may be any of the follows- "Proprietorship, Partnership, LLP, Limited Company, Trust, HUF and Society."
Consequent upon introduction of GST, IEC number is the same as the PAN of the firm.
The IEC would be separately issued by DGFT.
Why is it required?
Every entity willing to expand their business beyond the country to foreign territories must have IEC - Import Export Code Registration.
or
Any Business willing to import any goods, raw materials from outside the Indian territory must get itself IEC Registration.
Exporters get numerus benefits under DGFT Export Schemes, to avail these benefits it is mandatory to get registered.
Illustrations
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When an importer has to clear his shipments from the customs then it’s needed by the customs authorities.
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When an importer sends money abroad through banks then it’s needed by the bank.
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When an exporter has to send his shipments then it’s needed by the customs port.
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When an exporter receives money in foreign currency directly into his bank account then it’s required by the bank.