Importer-Exporter Codes (IECs)

Subject – Economy

Context – Importer-exporter codes not updated after Jan 2014 to be deactivated

Concept –

The Importer-Exporter Code (IEC) is a key business identification number that 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 includes proprietorship, partnership, LLP, limited company, trust, and society.
After the introduction of GST (Goods and Services Tax), the IEC number is the same as the PAN of the firm.
It is issued by the DGFT (Director General of Foreign Trade – Ministry of Commerce and Industry).
IEC is a 10-digit code which has lifetime validity.
Predominantly importers cannot import goods without the Import Export Code and similarly, the exporter merchant cannot avail benefits from DGFT for the export scheme, etc. without IEC.

Directorate General of Foreign Trade (DGFT)

Directorate General of Foreign Trade (DGFT) organisation is an attached office of the Ministry of Commerce and Industry and is headed by Director General of Foreign Trade.
It is responsible for formulating and implementing the Foreign Trade Policy with the main objective of promoting India’s exports.
Headquarters: New Delhi
Functions:
- Licensing of imports and exports.
- Regulate, restrict or prohibit exports and imports.
- It plays an advisory role to the Government on Policy measures pertaining to national and international economic scenarios.