In the age of westernisation, every businessman looks forward to expanding their business globally. However, it is hard to expand the business beyond the limits of domestic markets as more and more complex factors come into play, which in turn makes it difficult for a businessman to meet with the same. Several procedures and laws have to be followed before going global. The IEC (Import Export Code) provides perks to the businessmen thinking of importing or exporting from and to India.
An individual who intends to begin with their import/export business will need an IEC (Import Export Code). A 10 digit code is issued by the DGFT, Ministry of Commerce and Industries, Government of India, which is known as the Import Export Code with a lifetime validity. No import and export business can be made in India without registering under the IEC. It is mandatory to obtain an IEC for the smooth functioning of import and export businesses. In the case of any service provider taking benefits under the Foreign trade policy it is mandatory to get an IEC.
An Import-Export Code is also mandatory at the time of making a payment outside India. The Reserve bank of India makes it compulsory to have an IEC before clearance of the products from overseas. Even in the case of huge imports, the merchant cannot import without the IEC and the exporter vendor will not get any benefit from the DGFT for the purpose of any export scheme.