IEC stands for Import Export Code which can be obtained through filing an application with Directorate General of Foreign Trade (DGFT). Import Export Code (IEC) is one time license being issued to a person who is engage in International Trade of goods. Such trade may be import or export of goods. Point here to be noted that IEC is not required for service provider who is importing or exporting services.
How to apply for Import Export Code (IEC):
To avail IEC code an application is required to be filed with DGFT. Application can be filed either online or offline. Form ANF-2A is required to be submitted while applying for IEC code. Here ANF stands for Aayaat Niryaat Form. Once application is being approved by concern officer at DGFT then IEC code will be allocated to applicant. Such IEC Code (license number) will be same as PAN of applicant it means PAN (Permanent Account Number) and IEC (Import Export Code) having same number however to avail IEC code separate application needs to be filed in Form ANF-2A.
Why Import Export Code (IEC) required:
IEC license is essentially required for import and export of goods without IEC, inter country movement of goods would not be allowed. However government has issued exemption list and person classified in this list shall not be required to apply for IEC code and can involve in movement of inter country goods without Import Export License. Such specified persons include:
- Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
- Persons importing/exporting goods from/to Nepal and Myanmar provided the CIF (Cost Insurance Freight) value of a single consignment does not exceed INR 25,000
- Ministries/Departments of the Central Government/State Government
Import aspect about Import Export Code/License:
- Application for IEC code can be filed with the help of an OTP, Digital Signature shall not be required for IEC.
- Once IEC obtained, it will be valid for life long. Further there is no requirement for renewal of same.
- A requisite amount of government fee is to be paid while filing IEC application.
- IEC code can be obtained immediately after filing an application, however if officer is not satisfied with application he can raise query and can ask for clarification.
- An amendment application can also be filed if there are changes in place of business, addition deletion of any branch etc.