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What is use of the import export code?

In the world of foreign trade, Import Export Business is known to be one of the most common and hot terms. This sector helps you by allowing your business to grow in a rapid manner. Moreover, this will also help in increasing global reach. The economic infrastructure of a country is also dependent on this business as it helps in increasing a country’s economy by increasing the GDP. Gross Domestic Product (GDP) is an indicator of a country’s overall economic health and export import business plays a vital role in contributing to it. To engage in this business, one needs to obtain an Export Import Code (EIC) from the Directorate General of Foreign Trade (DGFT). EIC is a 10-digit code issued by DGFT that authorizes businesses to import or export goods. This code is required for all shipments above Rs. 25,000 in value.

Some important criteria are there which are very much mandatory for the business of import and export. One of them is the IEC code which is the Import Export Code registration. It is known to be one of the most important requirements for a person or any other type of business that deals with the import and export business. The Director-General of Foreign Trade is responsible for issuing the Import-Export code for industries and commerce.

What do you mean by Import Export Code?

One of the best options for new people is the IEC or the Import Export Code. This is known to be one of the first steps of registration for the people who are engaged in the import and export of products and services. The Director-General of Foreign Trade issues the IEC code which is having a unique code of 10 digits. This is known to be one of the most necessary documents for the Import-Export business.

A person can easily grow up the level of their business with the help of this IEC code. A business entity can use the IEC code once it has been issued and it is known to be the Import Export License. There is no need for the importer and exporter to renew or fill the issue. The IEC code is required by the importer who imports goods to its country and also to the exporter who exports its good from their country to another country. IEC is also required by the bank when there is a need for sending money abroad.

Uses of Import Export Code

Import Export Product Codes are essential for the person who are in this business as mentioned earlier. Ships carrying cargo play a major role in transferring the cargo or goods from one place to other and helps in importing and exporting goods. In order to unlock the corridors of the International economic and trade market IEC plays a major role. There is various use of this code as this is required by both importers as well as exporters. It is very important for an importer to clear the shipment from customs and here comes the role of the Import Export Code for the importers. Now for the exporters when they are responsible for exporting their items to other countries this code is asked by the customs. The major uses for this IEC Code are as follows-

  • Expansion of business is known to be the first and foremost use for this Import and Export Code as this IEC plays a major role in assisting a businessman to take their services as well as product to the global market.
  • A company can easily avail of various benefits with the help of this Import Export Code from customs, DGFT (Director General of Foreign Trade), and export promotion council depending on the registration of IEC.
  • Now for the exporters who get their payments by means of foreign currency and the transferring of money is taken place through the bank account of the exporter in a direct manner this IEC code is used.

There is also an Import Export HS code which is being followed by 200 countries all around the world. In order to execute the international trade agency the most systematic method that can be used is the IEC HS code. This code is having a unique code of 6 digits which is given for any particular item that is to be imported or exported.

Documents that are important for Import Export Code

Before knowing about the uses of the Import Export Code it is very much essential to know about the documents that are required for receiving the license for Import Export Code. They are as follows-

  • Pan Card copy for individual or Company.
  • Rent of agreement of the premises or electric bill copy.
  • Aadhaar card or Passport copy or Voter’s ID for an individual.
  • An envelope that is self-addressed for registered mail delivery of the certificate of Import Export Code.
  • Copies of cancel cheque of current bank account for firms, companies, or individuals.

There are also various benefits that can be avail by the use of this Import Export Code and they are the expansion of business, no requirement for renewal, no return filing, simple processing,  etc.

Conclusion

However, it is very essential to keep in mind that there are some places where the Import Export Code is not mandatory. According to the latest circular that has been issued by the Government, it is not mandatory for any traders who are having their registration under GST. So pan card of the user is used in this case as IEC code. This is also not essential for goods of personal purposes. The above points will surely help in guiding the Import Export Code and knowing about their uses as well as the things essential to receive this IEC.

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FY23 exports growth may slip, goods shipments seen

India’s exports growth may slow to 15-17.5% in FY23 but containment of Covid-19 through massive vaccination across the globe and creation of required capacity will be the decisive factors, the country’s top exporters body has said.

The Federation of Indian Export Organisations (FIEO) on Thursday said that FY22 is expected to end with merchandise exports of $400 billion, a growth of 37.6% over $290.6 billion of exports in FY21, but the aim for the next fiscal is $460-475 billion.

Since $400 billion would be a high base for FY23, an export growth of 30-35% on such numbers would be difficult, particularly as additional exports may require augmenting the capacity as well, FIEO said in a statement.

Looking into the emergence of the new variants (of Covid-19) and supply side challenges at this point of time, we would like to be a little conservative and will aim for an export of $460-475 billion during the next fiscal,” said FIEO president A Sakthivel.

Much will depend on the containment of Covid-19 through massive vaccination across the globe and creation of required capacity, which would decide whether India should look for 15-20% growth or even more for the next financial year.

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Exports up 36% on-yr in Dec 1-21

India’s exports in the first three weeks of December rose 36.20% on-year at $23.82 billion. Outbound shipments were 27.7% higher than the same period of 2019-20, sources said.

Export excluding petroleum, oil and lubricants increased 28.08% over the corresponding period last year.

In the third week of December, exports rose 20.83% on-year at $7.36 billion. Export excluding petroleum increased 24.56% over same period of FY21 and up by 29.25% over same period of FY20.

India aims to clock $400 billion of goods exports in FY22, a growth of 37.6% from $290.6 billion.

However, the country’s top exporters body has said that exports growth may slow to 15-17.5% in FY23 but containment of Covid-19 through massive vaccination across the globe and creation of required capacity will be the decisive factors.

The Federation of Indian Export Organisations said that FY22 is expected to end with merchandise exports of $400 billion but the aim for the next fiscal is $460-475 billion.

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How Importing and Exporting Impacts the Economy


With globalization, the world has become easily accessible for anyone who wishes to reach
out. Businesses, be it a small or a grand one, are spreading fast. And exporting and
importing goods have become one of the most important requirements.
When a business starts functioning internationally a lot of additional factors join the process
and the national and global economy stands at the top branch of it. The export and import
of goods not only pushes the business towards a better path but also takes an effective role
in expanding the economy.


How does it work?

Not all country has every necessary resource. While some countries own minerals or fossil
fuels, others possess precious metals. Similarly, some nations have an advanced
infrastructure while others do not. To balance and benefit one nation, it imports what it
lacks and exports what it has in huge quantities. And that is how one way or the other, all
the countries grow their economy.


What role does a nation play?
Importing and exporting activity of a country can directly impact its GDP, exchange rates,
and the level of inflation and interest percentages. Therefore, a nation’s economy plays a
significant role. A country with a strong currency hampers its exports and makes the imports
cheaper while a nation with comparatively weaker currency makes its imports costly and
fuels the exports.
Moreover, when the export rate is higher it would signify that the economy is advancing
better than overseas markets. But it may impact the exchange rates in a typical way. Thus,
maintaining a balance of imports and exports is very crucial for a country as it affects its GDP
and also balance of trade directly. A nation’s economy is accepted healthy when both its
import and export rates are growing. It designates the economy is strong enough.


Importance of Import & Export
Importing and exporting help small and medium start-ups and businesses greatly. By
importing goods, they get to save manufacturing costs and at the same get exposure to the
global market. In the same way, by exporting products they reach a larger market and earn
higher profit.
The system of importing and exporting products do not only profits the business but also
benefits the consumers. The customers get to purchase items that are not available locally
and are sold at higher prices. By buying the items directly from the manufacturer through
the internet save both their time and money.


Why approach EximIntell?
EximIntell is a leading import and export platform that has been providing the best quality
service across India for over 20 years. The team of EximIntell includes brilliant consultants

who possess not just experience in the field but also years of market research. They have in-
depth knowledge about how the domestic and international markets work.
Furthermore, understanding where to invest and which market can benefit you the most is
more than necessary. EximIntell organization offers high-quality consultation as well as
training programs, business start-up/set-up services, e-commerce services to businesses,
entrepreneurs, and interested learners. It is a one-stop solution for your import and export
business!

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