1. Purpose

• The IEC is a mandatory requirement for any person or entity engaged in the import or export of goods and services to or from India.

• It is a key identification number used in customs documentation and financial transactions related to international trade.

2. Applicability

• Individuals, partnerships, companies, LLPs, and any other legal entities involved in international trade need to obtain an IEC.

• Even if an individual or entity doesn't plan to engage in international trade currently, obtaining an IEC is recommended for future flexibility.

3. Application Process

• The application for an IEC is submitted to the DGFT through an online portal.

• The application form requires details such as the applicant's name, address, PAN (Permanent Account Number), bank details, and information about the nature of the business.

4. Validity

• The IEC is typically valid for the lifetime of the entity, and there is no need for periodic renewal.

• However, any changes in the details provided during the application process should be updated with the DGFT.

5. Benefits

• Enables international trade: The IEC is a prerequisite for carrying out import/export activities and is required for customs clearance.

• Open a business current account: Many banks require an IEC to open a business current account for international transactions.

• Avail of benefits and incentives: Certain export promotions and incentives offered by the government are accessible only to entities with a valid IEC.

6. Exemptions

• Individuals or entities engaged in certain exempted categories of activities may be eligible for exemption from obtaining an IEC. However, it is advisable to check the current regulations.

7. Amendment and Surrender

• Any changes in the details provided in the IEC application, such as a change in address or business activity, should be updated with the DGFT.

• If an entity ceases its import/export operations, it can surrender its IEC to the DGFT.

8. Penalties for Non-Compliance

• Engaging in international trade without a valid IEC can lead to penalties, confiscation of goods, and other legal consequences.

Obtaining an IEC is a fundamental step for entities involved in international trade in India. It streamlines the customs clearance process and facilitates smooth transactions in the global market.