Taking your product or services to the international market will expand your businesses. But visualizing an import/export operation itself can be difficult for an uninitiated person, and her job is made more difficult by the various commercial jargon and legal procedures that international trade has. In this present article, we shall deal with a small part of import and export, called Importer Exporter Code explained by Edge Legal.
What is Importer Exporter Code (IEC) :
The first requirement before you start an import/ export business in India is to obtain an IEC. An IEC is necessary for import/export of goods. In case the import/export is of services or technology, IEC is required in only limited circumstances, when import/export is in ‘specified services’ or ‘specified technologies’, i.e. services or technologies in which international trade is restricted by the Government of India as they pertain to national security, such as dealing in nuclear weapons, automatic guns, etc.
IEC is not required under the following circumstances:
1. Import/export of goods for personal use, which is not connected with trade, manufacture or agriculture.
2. Import/export by government ministries and departments, and certain notified charitable organizations.
Procedure for obtaining IEC:
- An application needs to submit online through the authorized portal of DGFT.