IEC registration is required by a person for exporting or importing goods. It is a 10 digit code which is issued by the Directorate General of Foreign Trade (DGFT). All businesses which are engaged in Import and Export of goods require registering Import Export Code. IE code has lifetime validity. Importers are not allowed to proceed without this code and exporters cant take benefit of exports from DGFT, customs, Export Promotion Council, if they dont have this code.

Every Person willing to start the Business of Import & Export ie rtequired to take the Import Export Licence from the DGFT Department. Without IEC Code no person shall be allowed to import or export any kind of articles.
The IE Code must be quoted by importers while clearing customs. Also, banks require the importers IE Code while sending money abroad. For exporters, IE Code must be quoted while sending shipments. And banks require the exporters IE Code while receiving money from abroad.