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Current Affairs

Import Export Codes

Date: 30 September 2021 Tags: Miscellaneous

Issue

Firms which have not updated information to the government will have their Import Export Codes (IECs) deactivated.

 

Background

The move was necessitated after confiscation of heroin consignment of 2,988 kg from the Mundra port.

 

Details

  • Many organizations use a front company to import illegal items through legal routes using Import Export Codes.

  • Firms will have to provide updated details of their venture year between April and June. This was after Directorate General of Foreign Trade (DGFT) amended IEC rules.

  • The timeline for updating the information details was extended by the DGFT after many firms requested extension till August.

  • The IEC is compulsory for any firm engaging in exports or imports. They are issued by the DGFT.

 

The heroin smuggling incident

  • The heroin consignment was found in a cargo labeled as “semi-processed talc stones” that was imported by Aashi Trading Company. A similar consignment was imported by the company in June this year.

  • The record of the company was not available with the registrar of companies on the website of the Ministry of Corporate Affairs (MCA).

  • It may be possible that the company may have been registered as a sole proprietorship with the MCA, as such records are not maintained.

 

Significance

The revocation of IECs is a way to clear out illegal companies that were beyond the radar and could not be traced.

 

Importer-Exporter Code (IEC)

  • IECs are business identification number is mandatory registration for Exports or Imports of goods. Only the GDFT has the powers to issue IECs.

  • It is a 10-digit code which has lifetime validity and is compulsory needed for getting benefits from DGFT.

 

Firms eligible for IECs

  • Proprietorship

  • Partnership

  • Limited Liability partnership

  • Limited Company

  • Trust

  • Hindu Undivided Family

  • Society