IE Code is a ten-digit unique code assigned by the Director General of Foreign Trade (DGFT) for your business if you want to import or export goods in India. It is valid for a lifetime and is non-transferable. It serves as proof of your business entity's registration with the DGFT and is to be quoted in all shipping documents for customs clearance. 

IE Code is a unique code for your business.

You will also need to renew the Importer Exporter Code every year, it is mandatory now for IEC License holders. Once the import export code is issued, you can apply for port registration on the ICEGATE portal with the help of AD Code registration.

However, IEC is not necessary to be obtained if you are engaged in the export of services except when you as a service provider are taking benefits under the Foreign Trade Policy.

The main purpose of the IE Code is to track and monitor your imports and exports and to ensure that they comply with the country's foreign trade policy. An IE Code is mandatory if you wish to import or export goods in India, and is to be quoted in all shipping documents. 

Here are some examples where IE Code is required:

1. Custom Clearance: If you are importing or exporting goods, an IE Code is required for customs clearance documents such as the bill of entry for imports and the shipping bill for exports.
2. Commercial Invoice: The IE Code is included on the commercial invoices issued by an exporter to the importer to identify parties involved in international trade transactions.
3. Banking Transaction: Banks require IE Code for processing international trade-related transactions both receiving foreign currency and making any payments abroad.
4. Letter of credit: Banks also require IE Code to process letters of credit and other trade finance instruments.
5. Export Promotion Council Registration: Registration with export promotion councils and boards, which provide export-related benefits and support, also requires an IE Code.
6. Custom Bonds and Guarantees: IE Code is needed for executing various custom bonds and guarantees to execute various trade facilitation schemes.

Having an IE Code also allows an importer or exporter to avail of various benefits and incentives by the government for promoting trade. Besides, government tenders that involve international trade require an IEC.

Every registered business including proprietorship, partnership, LLP, Limited companies, HUF, trusts and societies require an IEC if they import or export for commercial purpose

Although the following categories of person have been exempted from obtaining Importer Exporter Code

1. Ministries or Departments of Central or State Government.
2. Persons are importing or exporting goods for personal use unrelated to trade, manufacturing, or agriculture.
3. Persons importing or exporting goods from or to Nepal, Myanmar through Indo-Myanmar border areas and China, provided the CIF value of a single consignment does not exceed Rs.25,000. In the case of Nathula port, the applicable exemption ceiling is Rs.1 lakh. 
4. Exemption from obtaining IE code is not applicable in exporting special chemicals, organisms, materials, equipment, and technologies listed in Appendix 3 of Schedule 2 of ITC HS.

The Official DGFT fee for Import Export Code Registration is Rs. 500, but you may require an IE Code Expert for accuracy filing for your Import Export Code for which the professional fee charged is Rs.2500. At CharteredONE, IEC expert filing charges are just Rs. 1,000 as shown in the table below:

The Benefits of having an Import Export Code are as follows:

1. Facilitation of import and export procedures: IEC is required for all documents related to imports and exports, such as shipping bills, bills of lading, and import-export declarations. Having an IEC ensures that all of these documents are processed smoothly and efficiently.
   
2. Eligibility for various benefits: Importers and exporters with an IEC are eligible for various benefits, such as duty-free imports and exports, export promotion schemes, and trade agreements.
3. Compliance with government regulations: IEC is mandatory for businesses engaging in international trade, and failure to obtain one can result in penalties. Having an IEC demonstrates that the business is compliant with government regulations.
4. Reputation and credibility: Obtaining an IEC is a sign that a business is legitimate and operating in compliance with the laws and regulations. This can help build the reputation and credibility of the business, particularly among foreign clients and partners
5. Business expansion: Having an IEC allows a business to expand into international markets, which can help increase revenue and growth potential.
6. Access to trade financing: Some of the trade financing institutions in India require an IEC for funding, so having an IEC can give a business access to additional financing options.

The IEC code is mandatory for import or exporting in India. No person or entity shall be allowed to import or export with an IEC number, unless it is specifically exempted

IEC is not necessary for service exporters, However, if the service provider wants to take benefit of foreign trade policy, then he must apply for an Import Export Code.