IMPORT EXPORT CODE
The Importer – Exporter Code (IEC) is a 10 digit identification number that is a key business identification number which is mandatory for Exports or Imports. No person shall make any import or export except under an IEC Number granted by the DGFT.
The nature of the firm obtaining an IEC may be any of the follows- “Proprietorship, Partnership, LLP, Limited Company, Trust, HUF and Society.”
What are the situations when 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 its 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.
Application Process
An application for grant of IEC number shall be made by the Registered/Head Office of the applicant. In case the applicant is a Company, an application needs to be made to the nearest Regional Authority of Directorate General Foreign Trade where the Registered Office of the Company is situated. In case of other applicants, an application needs to be made to the nearest Regional Authority of Directorate General Foreign Trade where the Head office of the applicant is situated. The application needs to be made in the ‘Aayaat Niryaat Form – ANF2A’ and shall be accompanied by documents prescribed therein.
In case of STPI/ EHTP/ BTP units, the Regional Offices of the DGFT having jurisdiction over the district in which the Registered/ Head Office of the STPI unit is located shall issue or amend the IECs.
Only one IEC would be issued against a single PAN. Any proprietor can have only one IEC number and in case there are more than one IEC’s allotted to a proprietor, the same may be surrendered to the Regional Office for cancellation.
Conditions of license
- No person shall transfer or acquire by transfer any license issued by the Licensing Authority;
- The goods for the export of which the license is granted shall be the property of the licensee at the time of the export;
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The Licensing Authority may issue a license for import subject to one or more of the following conditions, namely:
- That the goods covered by the license shall not be disposed of except in accordance with the provisions of the Policy or in the manner specified by the licensing authority in the license;
- That the applicant for a license shall execute a bond for complying with the terms and conditions of the license. - No person shall transfer or acquire by transfer any license issued by the licensing authority except in accordance with the provisions of the Policy;
- The goods for the import of which a license is granted shall be the property of the licensee at the time of import and upto the time of clearance through customs;
- The goods for the import of which a license is granted shall be new goods, unless otherwise stated in the license;
- The goods covered by the license for import shall not be exported without the written permission of the Director General.
Amendment of license
The Licensing Authority may of its own motion or on an application by the licensee, amend any license in such manner as may be necessary or to rectify any error or omission in the license.
Declaration as to Importer Exporter Code Number
On the importation into or exportation out of any Customs port of any goods the importer or exporter shall in the Bill of Entry or Shipping Bill or, as the case may be, in any other documents prescribed by rules made under the Act or the Customs Act, 1962 (52 of 1962), state the Importer-Exporter Code Number allotted to him by the Competent Authority.
Confiscation & Redemption
Any imported goods or materials for which
- any condition of the license, or letter of authority under which they were imported relating to their utilization or distribution; or
- any condition relating to their utilisation or distribution, subject to which they were received from or through, an agency recognized by the Central Government; or
- any condition imposed under the Policy with regard to the sale or disposal of such goods or materials
has been, is being, or is attempted to be, contravened, shall together with any package, covering or receptacle in which such goods are found, be liable to be confiscated by the Adjudicating Authority, and where such goods or materials are so mixed with any other goods or materials that they cannot be readily separated, such other goods or materials shall also be liable to be so confiscated.
The Adjudicating Authority may permit the redemption of the confiscated goods or materials upon payment of redemption charges equivalent to the market value of such goods or materials.