Import Export (IE) Code is a registration required for persons importing or exporting goods and services from India. IE Code is issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industries, Government of India. It is an unique 10 digit code issued by DGFT (Director General of Foreign Trade, Ministry of Commerce) to Indian Companies.
To import or export in India, IEC Code is mandatory. No person or entity shall make any Import or Export without IEC Code Number. Import Export Code or IE Code is required for undertaking import of export transactions and availing benefits under schemes like SEIS or MEIS. The IEC does not apply to technology and services. However, it does in certain cases in which international trade is restricted, such as nuclear weapons and automatic guns.
IE Codes when issued can be used by the entity throughout its existence and doesn’t require any renewal or filing. The IEC, once issued, is valid throughout the county, in all your branches or factories. So once an IE Code is obtained, it can be used by that entity for all its import or export transactions without any further hassle. Therefore, it is recommended for most organizations to obtain IE Code, irrespective of if they need it at the moment.
All importers must mention their IE Code while clearing customs when their goods arrive in India. All exporters must mention their IE Code while exporting their goods from India. Additionally, now RBI requests person importing or exporting services to also mention IE Code in foreign remittances in bank account. Therefore, IE Code is required for anyone involved in import or export in India