How Import Export Code (IEC) Facilitates International Trade

Import Export Code (IEC) is a unique 10-digit code issued by the Director-General of Foreign Trade (DGFT) to businesses that engage in import and export activities in India. It is a mandatory requirement for any business that wishes to engage in international trade.

How does IEC facilitate international trade?

IEC plays a crucial role in facilitating international trade by providing the following benefits:

• Legitimacy: IEC provides legitimacy to businesses engaging in international trade. It serves as a proof of identity for the business and ensures that the transactions are legitimate.

• Exemptions: IEC provides exemptions on various import and export duties, such as customs duty, excise duty, and service tax. This reduces the overall cost of doing business and increases the profit margins.

• Access to Government Schemes: Businesses with an IEC are eligible to apply for various government schemes and benefits, such as the Merchandise Export from India Scheme (MEIS) and the Export Promotion Capital Goods (EPCG) scheme.

• Expansion: IEC allows businesses to expand their reach beyond the domestic market and tap into international markets. This enables businesses to explore new opportunities and increase their revenue streams.

• Easier Processing: IEC makes the process of import and export simpler and more efficient. It enables businesses to avail benefits such as quicker customs clearance and simplified documentation.

How to apply for IEC code registration?

The process for IEC code registration is simple and can be completed online through the DGFT portal. Here are the steps to follow:

• Create an account on the DGFT website.

• Fill in the IEC code registration form.

• Upload the required documents, such as PAN card, bank account details, and passport-sized photographs.

• Submit the application and pay the fee.

• Track the status of the application through the DGFT portal.

Conclusion

In conclusion, an Import Export Code (IEC) is a crucial requirement for businesses that engage in international trade. It provides legitimacy, exemptions, access to government schemes, expansion opportunities, and simpler processing. Applying for IEC code registration is a straightforward process that can be done online through the DGFT portal. By obtaining an IEC, businesses can tap into international markets and increase their revenue streams.