IEC is a 10 Digit alpha-numeric number issued by Director General of Foreign Trade(DGFT). Any person/entity willing to do Import & Export business is required to have an IEC number. IEC is a primary requirement by Govt. of India to identify the Importing/Exporting firm/company/LLP etc.
Benefits of IEC
- There are various benefits for businesses doing Foreign Trade from various departments
- To obtain those benefits the business firm has to have an IEC number
- Benefits are bestowed from the below departments
- DGFT (Director General of Foreign Trade)
- Export Promotion Councils etc.,
Validity of IEC
- Validity is for lifetime unless cancelled by the competent authority
- Validity of IEC for EOUs / SEZs: IEC will remain valid irrespective of a firm’s status as a DTA unit or an EOU or a SEZ/ EHTP/STP/BTP unit.
- In case the firm is de-bonded and converted to a DTA following procedure needs to be followed
An unit which is an EOU or in SEZ/EHTP/STP/BTP after de-bonding will not surrender the IEC obtained from its jurisdictional Deputy Commisioner, SEZ.
The jurisdictional DC, SEZ will send the original IEC file to concerned RA of DGFT after de-bonding
RA becomes the custodian of such file and will allow de-bonded unit to make necessary modification in IEC.
The de-bonded unit will be eligible for benefits from the RA as per FTP.
Exemptions for IEC
- IEC is compulsory for import and /or exports. However, the following categories of importers or exporters are exempted from obtaining IEC.
- Ministries /Departments of Central or State Government
- Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
- Importers covered by clause 3(1) [except subclauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and (k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order, 1993.
- Persons importing/exporting goods from/to Nepal, Myanmar through Indo-Myanmar border areas and China (through Gunji, Namgaya Shipkila and Nathula ports), provided CIF value of a single consignment does not exceed Indian Rs.25,000. In case of Nathula port, the applicable value ceiling will be Rs. 1,00,000/-.