An Importer Exporter Code (IEC) is a key business identification number which is mandatory for export from India or Import to India. No export or import shall be made by any person without obtaining an IEC. For services exports however, IEC shall not be necessary except when the service provider is taking benefits under the Foreign Trade Policy. An individual or a business entity needs a 10 digit code to import or export products or services. This code is known as Import Export Code or IEC and it is issued by DGFT, Ministry of Commerce and Industries, Govt. of India.
When is IEC code required?
- Customs authorities need it to clear shipments during imports.
- The bank needs it to transfer the money when imports are made.
- Similarly during export the shipments the IEC is required.
- When exporter is supposed to receive money in foreign currency, IEC code is required to transfer the money to his account directly.