Import Export Code

ABOUT Import Export Code (IEC Number)
Meaning of Import Export Code

IEC is a 10 digit code number, which is issued by the Director General of Foreign Trade (DGFT).It is required by any person who is into import/export business in the country. Importers \ merchant cannot import goods without the Import Export Code and similarly the exporter merchant cannot avail the benefits from DGFT for the export scheme, and others without IEC.
 

Requirement of IEC:-

IEC is required for various purposes, following are some key purposes where it is required:

1.Import and export – No importer/exporter can import/export any goods or services in course of his or its business. In easy words we can say that IEC is a  prerequisite for import and export.

2.Shipment clearance –Shipment is the final step to export goods, one needs to show IEC in order to succeed in shipment clearance

3.Custom clearance-it is a verification check process of the goods imported. Custom department is sole authority to conduct custom clearance. The person importing the goods has to furnish IEC for successful custom clearance.

4.Payments in respect of import and export- An importer needs to furnish IEC while making payments, on the other hand exporter needs to furnish IEC while receiving payments.

Benefits of IEC

1.It is the primary proof for a firm as an Importer/ Exporter in India.

2. Other Serveral benifits-IEC is basic documents for various benefits in respect of export and import from customs, DGFT, Export Promotion Council etc.

3. It acts as a license for Importing and Exporting of goods.

4. Through IEC number, Goods are cleared from the custom authorities easily.

5. IEC reduces the transport of illegal export.

6. IEC not required for personal use.

7.Worldwide market reach– IEC enables the businesses to reach worldwide market and to grab opportunities to establish business in international markets by way of export of their products globally.

8.No Return Compliance: There is no specific compliance requirement such as annual filings or return fillings or any requirement of annual maintenance fees to be paid after obtaining IEC. However annual renewal is required now.

Life time validity– Deleted now.

Note: Import and Export Code ('IEC') holders are mandated to update IEC online every year vide Notification No. 58/2015-2020 dated 12.02.2021 : DGFT- The DGFT has made changes relating to IEC. Now IEC holders are required  to ensure that IEC is updated electronically every year during the April-June period. Even if there are no changes, it is to be confirmed online. IEC shall be deactivated in case of non-compliance.

What is RCMC Registration and when required?
RCMC is Registration-cum-Membership Certificate issued by the Export Promotion Council body under the Government of India. It is required for businesses that deal with the export of  restricted products and those seeking concessions or benefits under Foreign Trade Policy like Duty Withdraw.