Import Export Code (IEC) is a 10-digit code issued by the Directorate General of Foreign Trade (DGFT) for businesses involved in importing or exporting goods from India. It is generally required for carrying out import and export activities.
The IEC is linked to the business's PAN and does not need regular renewal. However, businesses have to update or confirm their IEC details online every year within the prescribed period to keep it active. It is also used in customs and other trade-related processes.
How It Works:
- A business applies for the code.
- The authority verifies the application.
- The code is issued upon approval.
- It is used in all import and export transactions.
- Required for customs clearance and payments.
Benefits:
- Mandatory for international trade
- Enables legal import and export activities
- Simplifies documentation
- Helps track trade transactions
Example:
An Indian trader wants to start exporting textiles to buyers abroad. Before shipping the goods, the trader applies for an IEC from DGFT. The IEC is then used for customs and other export-related processes.