{"id":1194,"date":"2021-01-12T10:43:54","date_gmt":"2021-01-12T10:43:54","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=1194"},"modified":"2021-01-12T10:43:56","modified_gmt":"2021-01-12T10:43:56","slug":"import-export-code-exemptions-in-india","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/import-export-code-exemptions-in-india\/","title":{"rendered":"All you need to know about Import Export Code Exemptions in India?"},"content":{"rendered":"\n<p>The Import\nExport Code (IEC) is required by every person who is engaged in the business of\nimport export trading. The IEC code is issued by the Director General of\nForeign Trade (DGFT) as required under the Foreign Trade Policy. Without\nobtaining the import export code, the import export activity cannot take place\nat all. IEC is a mandatory requirement to avail the benefits under the Service\nExport from India Scheme (SEIS) or Merchandise Export from India Scheme (MEIS).\nHowever, there is a certain list of categories of importers or exporters who\nare exempted from obtaining an IEC code. This article will provide with the\ninformation regarding all you need to know about Import Export Code Exemptions\nin India.&nbsp; <\/p>\n\n\n\n<p>The Import Export Code is a 10 digit unique number that has to be obtained by the importer or exporter. IEC registration plays a very important role for those who wish to expand their business globally. It unlocks the opportunity to reach to the global market to sell the products. <\/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-6a4dd24dad3f5\" 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-6a4dd24dad3f5\"  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\/import-export-code-exemptions-in-india\/#Import_Export_Code_exemptions_in_India\" title=\"Import Export Code exemptions\nin India\">Import Export Code exemptions\nin India<\/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\/import-export-code-exemptions-in-india\/#Permanent_IEC_numbers_for_Non-_commercial_PSUs\" title=\"Permanent IEC numbers for Non-\ncommercial PSUs \">Permanent IEC numbers for Non-\ncommercial PSUs <\/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\/import-export-code-exemptions-in-india\/#Why_importers_and_exporters_other_than_those_who_are_exempted_needs_to_obtain_Import_Export_Code\" title=\"Why importers and exporters\nother than those who are exempted, needs to obtain Import Export Code? \">Why importers and exporters\nother than those who are exempted, needs to obtain Import Export Code? <\/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\/import-export-code-exemptions-in-india\/#Validity_of_the_IEC_Code\" title=\"Validity of the IEC Code\">Validity of the IEC Code<\/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\/import-export-code-exemptions-in-india\/#Conclusion\" title=\"Conclusion \">Conclusion <\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Import_Export_Code_exemptions_in_India\"><\/span>Import Export Code exemptions\nin India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The list of categories for Import Export Code exemptions in India are as follows:<\/p>\n\n\n\n<ul><li>The Importers who are covered by clause 3(1) [except sub- clauses (e) and (I)] and exporters covered by clause 3(2) [except sub- clauses (i) and (k)] of Foreign Trade (Exemption from application of Rules in cases) Order, 1993. <\/li><li>Ministries or departments of State or Central government. <\/li><li>Persons exporting or importing goods for personal use which are not connected with trade, agriculture or manufacture. <\/li><li>Persons exporting or importing goods to or from Nepal, Myanmar through Indo- Myanmar border areas and China (through Gunji, Namgaya Shipkila and Nathula ports), provided that the CIF value of a single consignment does not exceed Indian Rs. 25,000. In the case of Nathula port, the applicable value ceiling will be Rs. 100,000\/-. <\/li><\/ul>\n\n\n\n<p>The Import\nExport Code exemptions shall not be applied for the export of Special\nChemicals, Organisms, Materials, Equipments and Technologies (SCOMET) as listed\nin Appendix \u2013 3, Schedule 2 of ITC (HS) except in the case of exports by\ncategory (ii) above. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Permanent_IEC_numbers_for_Non-_commercial_PSUs\"><\/span>Permanent IEC numbers for Non-\ncommercial PSUs <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following permanent IEC numbers shall be used by the non- commercial PSUs and the categories of exporters and importers mentioned against them for the purpose of export import:<\/p>\n\n\n\n<table>\n<tbody>\n<tr>\n<td width=\"54\">\n<p><strong>Sr. No.<\/strong><\/p>\n<\/td>\n<td width=\"198\">\n<p><strong>Permanent Import Export Code Number<\/strong><\/p>\n<\/td>\n<td width=\"363\">\n<p><strong>Categories of Importer\/ Exporter<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"54\">\n<p>1<\/p>\n<\/td>\n<td width=\"198\">\n<p>0100000011<\/p>\n<\/td>\n<td width=\"363\">\n<p>All the ministries or department of the Central government and the agencies partially or wholly owned by them.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"54\">\n<p>2<\/p>\n<\/td>\n<td width=\"198\">\n<p>0100000029<\/p>\n<\/td>\n<td width=\"363\">\n<p>All the ministries or departments of any State government and agencies partially or wholly owned by them.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"54\">\n<p>3<\/p>\n<\/td>\n<td width=\"198\">\n<p>0100000037<\/p>\n<\/td>\n<td width=\"363\">\n<p>Counsellor officers, Diplomatic personnel in India and officials of UNO and its specialised agencies.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"54\">\n<p>4<\/p>\n<\/td>\n<td width=\"198\">\n<p>0100000045<\/p>\n<\/td>\n<td width=\"363\">\n<p>Indians going abroad or returning from and claiming benefits under the Baggage Rules.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"54\">\n<p>5<\/p>\n<\/td>\n<td width=\"198\">\n<p>0100000053<\/p>\n<\/td>\n<td width=\"363\">\n<p>Institutions, Hospitals or Persons exporting or importing goods for personal use which are not connected with the trade, agriculture or manufacture.&nbsp;<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"54\">\n<p>6<\/p>\n<\/td>\n<td width=\"198\">\n<p>0100000061<\/p>\n<\/td>\n<td width=\"363\">\n<p>Persons exporting or Importing goods to or from Nepal.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"54\">\n<p>7<\/p>\n<\/td>\n<td width=\"198\">\n<p>0100000070<\/p>\n<\/td>\n<td width=\"363\">\n<p>Persons exporting or Importing goods to or from Myanmar through Indo- Myanmar border areas.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"54\">\n<p>8<\/p>\n<\/td>\n<td width=\"198\">\n<p>0100000088<\/p>\n<\/td>\n<td width=\"363\">\n<p>Ford Foundation.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"54\">\n<p>9<\/p>\n<\/td>\n<td width=\"198\">\n<p>0100000096<\/p>\n<\/td>\n<td width=\"363\">\n<p>Importers importing goods for display or use in exhibitions or fairs or similar events under the provisions of ATA carnet. This IEC number can also be used by the importers importing for fairs or exhibitions as per Para 2.29 of HBPv1.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"54\">\n<p>10<\/p>\n<\/td>\n<td width=\"198\">\n<p>0100000100&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n<\/td>\n<td width=\"363\">\n<p>Director, National Blood Group Reference Laboratory, Bombay or their authorized offices.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"54\">\n<p>11<\/p>\n<\/td>\n<td width=\"198\">\n<p>0100000126<\/p>\n<\/td>\n<td width=\"363\">\n<p>Charitable Institution, Registered NGOs or Individuals importing goods, which have been exempted from Customs duty under the notification issued by the Ministry of Finance for bonafide use by the victims affected by natural calamity.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"54\">\n<p>12<\/p>\n<\/td>\n<td width=\"198\">\n<p>0100000134<\/p>\n<\/td>\n<td width=\"363\">\n<p>Persons exporting or importing permissible goods as notified from time to time, to or from China through Gunji, Namgaya Shipkila and Nathula ports, subject to value ceilings of single consignment as given in Para 2.8 (iv) above.&nbsp;<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"54\">\n<p>13<\/p>\n<\/td>\n<td width=\"198\">\n<p>0100000169<\/p>\n<\/td>\n<td width=\"363\">\n<p>Non- commercial exports or imports by entities that have been authorized by the Reserve Bank of India.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_importers_and_exporters_other_than_those_who_are_exempted_needs_to_obtain_Import_Export_Code\"><\/span>Why importers and exporters\nother than those who are exempted, needs to obtain Import Export Code? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Other than the\ncategories exempted to obtain IEC Code, in the following situations the import\nexport code is required by the importers and exporters: &#8211; <\/p>\n\n\n\n<ul><li>It is mandatory to obtain IEC Code to clear the\nshipments from the customs by the custom authorities.<\/li><li>It is necessary to provide Import Export Code by\nthe exporters to the banks to send funds via banks. <\/li><li>The exporters are required to provide Import\nExport Code to the Custom ports to clear the shipments.<\/li><li>The exporters are required to provide Import\nExport Code to the bank to receive the funds in foreign currency transferred to\nthem via bank. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Validity_of_the_IEC_Code\"><\/span>Validity of the IEC Code<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Once the IEC Code is obtained; it is valid for a lifetime. There is no need to file for the renewal of the <strong><a href=\"https:\/\/swaritadvisors.com\/iec-registration\" class=\"text-primary\">IEC Code registration<\/a><\/strong>. The IEC code is valid until the business exists or the registration is surrendered or revoked. The Exporter or Importer does not need to file for or follow any compliance requirement like annual filling. <\/p>\n\n\n\n<p>Since, the\nvalidity of the IEC Code is for a lifetime, once it is obtained, it requires no\nadditional compliance and all those businesses or firms who wish to expand\ntheir business globally must obtain IEC code, and for the firm once it is\nincorporated. <\/p>\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>IEC code is mandatory code that is to be obtained by all the businesses engaged in the import export trade. Such Code is issued by the <strong>DGFT<sup><a class=\"text-primary\" href=\"https:\/\/www.dgft.gov.in\/CP\/\"><strong><em>[1]<\/em><\/strong><\/a><\/sup>,<\/strong> but there are some categories defined by DGFT, which are exempted from obtaining the code. The Import Export Code Exemptions in India is provided to certain importers and exporters mentioned in the list, which is stated above in the article. Other than that, no person is allowed to engage in import export trade without obtaining the IEC Code.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/frequently-asked-questions-about-import-export-in-india\/\">Frequently Asked Questions (FAQs) about Import Export in India<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Import Export Code (IEC) is required by every person who is engaged in the business of import export trading. The IEC code is issued by the Director General of Foreign Trade (DGFT) as required under the Foreign Trade Policy. Without obtaining the import export code, the import export activity cannot take place at all. [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1195,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[40],"tags":[169],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1194"}],"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=1194"}],"version-history":[{"count":4,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1194\/revisions"}],"predecessor-version":[{"id":1200,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1194\/revisions\/1200"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/1195"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=1194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=1194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=1194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}