The Importer Exporter Code essentially facilitates and enables the Indian business community to trade all over the world. It basically acts as a unique business identification number; it therefore unlocks international markets.
The IEC is a must for any firm which plans to import or export goods or services from India. An entity cannot legally conduct its international trade unless exempted without obtaining an IEC. This code enables businesses to abide by the customs regulation for smooth handling of shipment without delay.
Other schemes of the government and export incentives are also available to enterprises who possess an IEC. These benefits support growing competitiveness by offering duty exemptions and financial incentives, as according to the Foreign Trade Policy, improving exporters' cost savings along with other benefits from profitability.
Linking IEC with GST registration offers an immediate link to all businesses involved in international trade. It will address compliance under government regulations and simplify the customs procedure. It will also allow the use of export-import schemes to make the whole process of trade smooth and efficient.
The IEC streamlines the whole customs clearance process through its use as a unique identifier for shipments. This helps businesses to clear goods through customs faster and ensures that they are in full conformity with all laws and regulations applied in the country. International trade operations are carried out smoother and less unpredictably.
The most common dilemma in IEC registration is dealing with complex documentation requirements. Most companies struggle to arrange and submit all the documents including the PAN card, bank details, and address proof. Mistakes or lack of information often lead to verification problems and subsequent delays.
If your IEC registration is disapproved or delayed without cause, you may exercise legal remedies. Businesses can file a complaint before the DGFT or approach a legal consultant to resolve it. Knowing your rights helps avoid unwarranted delays.