What is the Full Form of IEC?

IEC stands for Importer-Exporter Code. Allotment of Importer Exporter Code IEC is mandatory for Enterprises engaged in Import and export activities. Failing to obtain IEC can result in penalties or even legal consequences. It is legal proof for business’s having international trade operations.
Registration of IEC is required for Export from India as well as Import in India.

What are the Benefits of IEC ?

The following are the advantages of Allotment of  IEC :-

Worldwide Recognition

Any person or corporate organization that has IEC certification will profit from global recognition since the items exported will be acknowledged worldwide. As a result, such a corporate structure enables the brand to be more competitive while also increasing customer trust and confidence.

Simplified Online Process

The application procedure for IEC codes has been deliberately designed to be straightforward, Online & easy for every applican.

Advantages and Govt Subsidies

Export of commodities produced/manufactured in India increases the country’s foreign reserves. As a result, to encourage the manufacturing of high-quality items and their export outside of India, The government of India provides a variety of advantages and subsidies to people and/or corporate organizations, such as tax breaks, rebates, and subsidies. It could only be received by someone with a valid IEC.

Fewer Compliances

One of the most significant benefits of having a valid IEC is that it requires much less legal filings or compliance procedures than other licenses. As a result, a person or business entity with an IEC who does import and/or export activities is not needed to submit any periodical returns or any superfluous fees or license renewal costs from time to time.

Legal Credibility

The IEC code provides consumer confidence and legal credibility in the relevant market for any person or company entity seeking registration. Failure to get registration on time may expose such person or corporate entity to intensive scrutiny, prosecution, and the payment of a large penalty.

Eliminate Illegal Cross – Border Trades

In the past, items were illegally transported across borders for export-import. Yet, with IEC code, it is simpler for government officials and administration to keep track of every transaction pertaining to export or import.