Sellers selling goods outside the state/country they operate is called the export of goods, purchasing goods from other countries is called import of goods. When you decide to sell the goods and services of your firm in international markets, the first step you need is to obtain Import Export code.
In the process of import and export of goods, IEC is used for clearing goods from custom authority or service provider. IEC is a 10 digit unique number that is issued by Directorate General of Foreign Trade (DGFT), Government of India. It does not matter how small or big your business firm is, no seller can import and export goods without IEC.
It has become much easier to obtain Import Export Code, as now we can get it online. New entrepreneurs now can get IEC without visiting the authorized office. They can upload the documents and can pay online.
Why is IEC required?
- IEC acts as a License for Importing and Exporting goods.
- IEC is registered along with dealer code details with the port through which the goods are being imported or export.
- Goods are cleared from customs authorities through IEC.
- IEC reduces transport of illegal goods: No one can obtain IEC without full information of the good that will be imported or exported. Thus it restricts transport of illegal goods.
- Companies can enjoy various benefits on imports and exports from DGFT, Customs, and Export Promotion Council etc.
How Can you Get IEC?
First of all, you need to ensure if you are eligible for getting an import export code. To be eligible, you should have the following documents. Make sure you have them all before you apply for import export code.
- PAN number
- Current bank account
- Premises proof (property papers, if self-owned / rent agreement if rented)
- Identity proof
- Banker’s certificate
- Company’s cover Letter for the issue of IEC number.
An IEC application form is submitted to regional joint DGFT office with the above documents attached.