Overview of Import Export Code (IEC) registration

The Import Export Code (IEC) is issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industries, Government of India, to registered Indian companies. This 10-digit code is essential for cross-border traders, facilitating customs clearance and international trade transactions.

The RBI mandates the use of IE Code for all payment transfers abroad, and customs clearance requires this code for shipments from overseas. Once issued, the IEC remains valid indefinitely, allowing entities to conduct import-export operations seamlessly over time.

Frequently asked questions

Why is a bank certificate required to get an IEC code?

Each branch of a firm, company, corporation, society, club, or association is considered a distinct entity for tax purposes, requiring separate registration and compliance with tax liabilities.

Is it mandatory for a start-up online store to obtain an IEC(Import-Export code) in India to be able to ship internationally?

Linking a bank account to your Import Export Code (IEC) is essential for complying with FEMA regulations. This certification ensures your capability to handle foreign remittances securely and receive international funds as an exporter. Without a designated bank account, you risk non-compliance and potential foreign exchange fraud. Be sure to have a functioning current account to align with regulatory requirements for smooth international transactions.

How many types of products can I export through one IEC?

Obtaining an Import Export Code (IEC) is mandatory for sustained business and revenue generation through international trade. However, for occasional shipments, you can leverage local international courier agencies with partnerships like FedEx and DHL to handle shipping on your behalf. This approach is ideal for one-off transactions without the need for an IEC.

Is IEC (Import Exporter Code) necessary for freelancers who export services outside of India?

The export of services by freelancers typically does not require an Import Export Code (IEC), especially for general services. However, an IEC is necessary for service exporters or importers who seek benefits under foreign trade policies. If you're exporting services without policy benefits, an IEC may not be needed.