Import and Export Code (IEC)
Import and Export are means of Foreign Trade. Foreign trade is carried out in goods and services – which includes imports, exports, and the balance of foreign trade – is presented separately for goods and for services.. The total imports, exports, and balance of foreign trade are presented as summaries of goods and services. Import Export Code (also known as IEC) is a 10 digit identification number that is issued by the DGFT (Director General of Foreign Trade).
What is import?
Imports are the goods and services a business or customer purchases from another country. This results in an outflow of funds from the country that is purchasing foreign goods and services.
What is export?
Exports are the goods and services a country produces domestically and sells to businesses or customers who reside in a foreign country.
Why are exports and imports important?
Exports and imports are important because together they make up a country's balance of trade, which can impact an economy's overall health. In a healthy economy, both imports and exports see continual growth. This usually represents a sustainable and strong economy. When exports and imports become unbalanced, it can cause either a trade surplus or a trade deficit.
Where IEC is Required?
► When an importer has to clear his shipments from the customs then it’s needed by the customs authorities.
► When an importer sends money abroad through banks then it’s needed by the bank.
► When an exporter has to send his shipments then it’s needed by the customs port.
► When an exporter receives money in foreign currency directly into his bank account then it’s required by the bank.
Benefits of Import and Export:
► Is comparatively less risky when compared with different routes of entering in international business.
► It is one of the simplest routes of entering into the global trade and import and export generate huge employment opportunities.
► Requires less investment in terms of time and money when contrasted with other methods of entering into the global trade.
► It gives better control over the trade than setting up a market and the risk is considerably low.
► As no nation can be 100% self-sufficient, import and export are very crucial for the functioning and growth of that nation.
Documents required for Import Export Code:
► Individual’s or Firm’s or Company’s copy of PAN Card
► Certificate of Incorporation of Company
► Individual’s voter id or Aadhar card or passport copy
► Individual’s or company’s or firm’s cancel cheque copies of current bank accounts
► Copy of Rent Agreement or Electricity Bill of the premise