{"id":1036,"date":"2021-01-09T05:44:00","date_gmt":"2021-01-09T05:44:00","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=1036"},"modified":"2021-01-09T05:44:43","modified_gmt":"2021-01-09T05:44:43","slug":"difference-between-iec-certification-and-import-license","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/difference-between-iec-certification-and-import-license\/","title":{"rendered":"Know the Complete Difference Between IEC Certification and Import License"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The IEC Certification and Import License\/Authorization are significantly different from each other as both of them serves difference purpose. The difference between IEC certification and Import license is based on the fact that where one is a unique number that permits the businesses to trade in import export activities while the other one is a notification that states the legal restrictions associated with such activities. This article will help you to know the complete difference between <strong><a href=\"https:\/\/swaritadvisors.com\/iec-registration\" class=\"text-primary\">IEC Certification<\/a><\/strong> and Import License in India. <\/p>\n\n\n\n<p>The Import\nExport Code (IEC) is a basic form of registration that ever business engaged in\nimport export activity has to acquire before commencing the foreign trade\nbusiness. The business deals cease to exist in import export activities without\nobtaining IEC. Whereas when a business wants to conduct an import export trade\nor import of certain articles, under both of these cases an Import license is\nrequired. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3ab904e7c33\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3ab904e7c33\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/difference-between-iec-certification-and-import-license\/#Understanding_Import_Export_Code\" title=\"Understanding Import Export\nCode\">Understanding Import Export\nCode<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/difference-between-iec-certification-and-import-license\/#Understanding_Import_LicenseAuthorization\" title=\"Understanding Import License\/Authorization\">Understanding Import License\/Authorization<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/difference-between-iec-certification-and-import-license\/#Reasons_for_Existence_of_Principal_Restrictions_for_Import_License_and_IEC_under_the_EXIM_policy\" title=\"Reasons for Existence of Principal Restrictions for Import License and IEC under the EXIM policy\">Reasons for Existence of Principal Restrictions for Import License and IEC under the EXIM policy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/difference-between-iec-certification-and-import-license\/#Difference_between_IEC_Certification_and_Import_License\" title=\"Difference between IEC\nCertification and Import License\">Difference between IEC\nCertification and Import License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/difference-between-iec-certification-and-import-license\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Understanding_Import_Export_Code\"><\/span>Understanding Import Export\nCode<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Import\nExport Code (IEC) is a license in a form of a unique number or code which is allotted\nby the regional office of the Director General of Foreign Trade (DGFT) upon the\nsubmission of the application and requisite fee. Every business who is engaged\nin the import export trade has to necessarily acquire this code. The Import\nExport Code is a PAN based registration. The validity of the code remains for a\nspecific period of time or until it is cancelled or surrendered for any reason.\nIt is one of the key differences between the Import license and Import Export\nCode. The features of IEC are discussed as follows: &#8211; <\/p>\n\n\n\n<ol><li>The Import Export Code is a 10 digit code which is comprised on alpha-numeric. <\/li><li>It is mandatory to obtain the Import Export Code for any business engaged in the import export activity.<\/li><li>The Import Export Code is a PAN based registration. <\/li><li>Not more than one IEC code can be obtained with one PAN number. <\/li><li>The Import Export Code registration process has to be done online. <\/li><li>If any cause arises then the clarification in regard to this has to be done in an offline mode. <\/li><li>Without the digital signature, IEC registration cannot be done. <\/li><li>Without obtaining Import Export Code, a business cannot get involved in import or export activity. <\/li><li>The unique identification code is provided by the Director General of Foreign Trade (<strong>DGFT<sup><a href=\"https:\/\/www.dgft.gov.in\/CP\/\" class=\"text-primary\"><strong><em>[1]<\/em><\/strong><\/a><\/sup><\/strong>).<\/li><li>The Import Export Code remains valid unless it is cancelled or surrendered.<\/li><li>The IEC code clears the transactions in the importer\u2019s bank and also legalizes the shipping process. <\/li><li>The Import Export Code allows the exporter\u2019s bank to validate the payment coming from the export\u2019s bank. <\/li><li>The Import Export Code is used in shipping the documents such as a certificate of origin, bill of lading and the packing list. <\/li><li>The Import Export Code (IEC) is required by the customs to clear shipment from ports.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Understanding_Import_LicenseAuthorization\"><\/span>Understanding Import License\/Authorization<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Where the matter concerning the ethics of the materials that are exported or imported is involved, the obtaining of Import License becomes mandatory. There are certain items that cannot be and should not be considered to either be export or import material, including human cargo. The Import license is applicable to limited grounds. The license to import or export is required to impose some restrictions to ensure that the business activity is conducted with the limits confined to law. The individuals have to obtain Import license in the following scenarios, as according to the Director General of Foreign Trade (DGFT):<\/p>\n\n\n\n<ul><li>If the restricted items are to be imported by an individual under the Indian\u00a0Trade Clarification based on the Harmonized System of Coding ITS (HS) for the commercial purpose. <\/li><li>If the commodities are imported by an individual from the United States from the commercial purpose.<\/li><\/ul>\n\n\n\n<p>In either\nof these cases the import license from the authority is mandatory to obtain and\na separate application in regard to this has to be filed by the applicant to\nserve the above mentioned purposes. It is important to note that the Non- IEC\nholder cannot fill these forms and IEC registration is required to fulfil these\nprerequisites. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reasons_for_Existence_of_Principal_Restrictions_for_Import_License_and_IEC_under_the_EXIM_policy\"><\/span>Reasons for Existence of Principal Restrictions for Import License and IEC under the EXIM policy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The trading of\ngoods is encountered to certain limitations enlisted in the Export Import\n(EXIM) Policy in order to promote the following objectives: &#8211;<\/p>\n\n\n\n<ol><li>To protect the morals of the public. <\/li><li>To protect the lives of the humans, animals\nand plants. <\/li><li>IPR protection.<\/li><li>To maintain the artistic, historic and archaeological\nvalue of national treasure. <\/li><li>To conserve the natural resources. <\/li><li>To discourage and limit the trafficking of war\nrelated items, weapons and illegal drugs. <\/li><\/ol>\n\n\n\n<p>The\npurpose of Import License is to ensure that the import activities are conducted\nwithin a legal paradigm. If any illegal activity is abounding or taking place,\nthe Import License shall be ceased along with other drastic penalties and\nimprisonment. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Difference_between_IEC_Certification_and_Import_License\"><\/span>Difference between IEC\nCertification and Import License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<table>\n<tbody>\n<tr>\n<td width=\"308\">\n<p><strong>IEC Certification<\/strong><\/p>\n<\/td>\n<td width=\"308\">\n<p><strong>Import License<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"308\">\n<p>IEC is a basic license for import export activity in India.<\/p>\n<\/td>\n<td width=\"308\">\n<p>Import License is required in special cases or circumstances in order to conduct the import export business in a legal way.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"308\">\n<p>An online form has to be filled by the applicant for IEC Certification.<\/p>\n<\/td>\n<td width=\"308\">\n<p>An ANF-2M form has to be filled by the applicant that is available on the DGFT portal or manually.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"308\">\n<p>Import Export Code (IEC) is applicable on all the activities related to import and export.<\/p>\n<\/td>\n<td width=\"308\">\n<p>The Import License is applicable in two cases: &#8211;<\/p>\n<p>1. To import the restricted items which are listed under the ITS (HS).<\/p>\n<p>2. To import goods from the United States.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"308\">\n<p>The filing and submission of IEC application is online completely.<\/p>\n<\/td>\n<td width=\"308\">\n<p>The ANF-2M form is filed and submitted manually.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Import Export Code and Import License\/Authorization are significantly different from each other in many ways. The difference between IEC Certification and Import License has been discussed above in this article. Where the Import License provides the legal framework for the businesses who are engaged in the import export activities, the IEC Certification is required to validate the import export trade.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/when-iec-code-is-required\/\">All That You Need To Know: When IEC Code is Required?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The IEC Certification and Import License\/Authorization are significantly different from each other as both of them serves difference purpose. The difference between IEC certification and Import license is based on the fact that where one is a unique number that permits the businesses to trade in import export activities while the other one is a [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1037,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[40],"tags":[158],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1036"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=1036"}],"version-history":[{"count":6,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1036\/revisions"}],"predecessor-version":[{"id":1043,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1036\/revisions\/1043"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/1037"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=1036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=1036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=1036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}