IEC (Import Export Code) is required by anyone who is looking to start import/export business in the country. It is issued by the DGFT (Director General of Foreign Trade). IEC is a 10-digit code which has a lifetime validity. Primarily, importers merchant cannot import goods without the Import Export Code and similarly, the exporter merchant cannot avail benefits from DGFT for the export scheme, etc. without having an IEC.
IEC is required in the following situations:
1. When an importer has to clear his shipments from the customs then it is required by the customs authorities.
2. When an importer remits money outside India through banking channel then it is required by the bank.
3. When an exporter has to send his shipments then it is required by the customs port.
4. When an exporter receives money in foreign currency directly into his bank account then it is required by the bank.
According to the latest circular issued by the government, IEC is not mandatory for all traders who are registered under GST. In all such cases, the PAN of the trader shall be construed as new IEC code for the purpose of import and export. Import Export Code (IEC) isn’t required to be taken in case the goods exported or imported is for personal purposes and isn’t used for any commercial purpose. Export/ Import done by the Government of India Departments and Ministries, Notified Charitable institutions need not require getting Import Export Code.