The Importer-Exporter Code, or IEC, is the permission the Government of India gives a business to trade across the border. The Directorate General of Foreign Trade (DGFT) issues it under the Foreign Trade (Development and Regulation) Act, 1992, and customs will not clear a commercial shipment without it. It costs ₹500, takes an afternoon online, and has no expiry date. The yearly update is where most businesses slip.
What the IEC is
- A 10-character code, usually the same as the business’s PAN. One entity holds one IEC, however many branches or ports it uses.
- Issued to the entity: a proprietorship, partnership, LLP, company, trust or society. The IEC follows the PAN, so a proprietor’s IEC is tied to the proprietor’s PAN.
- Used everywhere in trade: on shipping bills and bills of entry, on applications for certificates of origin, on DGFT authorisations, and on RoDTEP and other benefit claims.
The IEC is not a tax registration. You still need a GSTIN, and it is not a customs registration either. Customs picks up your IEC data from DGFT, and you register separately on ICEGATE to file documents and to link your bank’s AD code for exports.
Who needs one
Anyone importing or exporting goods commercially, and anyone exporting services who wants to claim Foreign Trade Policy benefits. The Handbook of Procedures lists exemptions. The best known are imports or exports for personal use that are not connected with trade or business, and some government departments and notified bodies. If you are unsure, apply: the fee is small and the code does not lapse.
What you need before you start
| Item | What exactly |
|---|---|
| PAN | Of the entity (the proprietor’s PAN for a proprietorship) |
| Address proof | Of the business premises: for example a sale deed, rent agreement, utility bill or GST registration certificate |
| Bank proof | A cancelled cheque with the entity’s pre-printed name, or a bank certificate |
| Contact details | A mobile number and email you control; DGFT sends OTPs and notices here |
| Signature | Aadhaar-based e-sign of the applicant, or a class 3 digital signature certificate |
How to apply, step by step
- Register on the DGFT portal (dgft.gov.in) and log in.
- Choose “Apply for IEC” under the IEC services. The form asks for the entity details, PAN, the addresses of the registered office and branches, the business activity, bank details, and the details of the proprietor, partners or directors.
- Upload the address proof and the bank proof.
- Pay the ₹500 fee online.
- Sign and submit with Aadhaar e-sign or a DSC.
- Download the e-IEC from the portal once it is issued. It is normally issued online without a physical visit.
Keep the PAN, address and bank details consistent with your GST registration and your bank’s records. Mismatches between DGFT, GSTN and ICEGATE are the most common reason a later filing is rejected.
The yearly update: April to June
Since 2021, every IEC holder must update or confirm the IEC details online once a year, between April and June, even if nothing has changed. If you miss the window, DGFT deactivates the IEC. A deactivated IEC stops shipping bills, bills of entry and certificate-of-origin applications until you complete the update, after which it is reactivated. Put a reminder in your April calendar and make one person responsible for it.
Changing or surrendering the IEC
Changes of address, partners, directors, bank or branch are made on the DGFT portal through “Modify IEC”. Update it the same week the change happens. Customs and banks read the IEC data, and a stale address can hold up a refund. A business that stops trading can surrender its IEC online.
Linking the IEC to customs and the bank
After you have an IEC:
- register on ICEGATE as an importer or exporter to file documents and track them;
- for exports, get your bank’s Authorised Dealer (AD) code and register it on ICEGATE for each port you will export from;
- if you will claim policy benefits, get an RCMC from the export promotion council for your product.
Only then is the business ready to file its first shipping bill. The rest of the sequence is in the export procedure guide and the import procedure guide.
IEC, GSTIN, AD code, RCMC: which does what
Four registrations get confused. Each one answers a different authority.
| Registration | Answers to | What it proves | Needed for |
|---|---|---|---|
| IEC | DGFT | You may import or export | Every commercial customs filing |
| GSTIN | GST Network | You are registered for GST | LUT, IGST refunds, input credit on imports |
| AD code | Your bank, via customs | Which bank reports your export proceeds | Every shipping bill, per port |
| RCMC | Export promotion council | Membership of the council for your product | Claiming Foreign Trade Policy benefits |
A new exporter needs the first three before the first shipment, and the fourth before the first benefit claim.
Why applications and filings get rejected
- The name does not match the PAN. The IEC takes the name as it appears on the PAN; the invoice and bank records must use the same spelling.
- The bank proof is in another name. A cheque from a proprietor’s personal account will not do for a company.
- The address proof is out of date, or it is for a different premises from the one declared.
- The e-sign fails because the Aadhaar-linked mobile number is not the one on the application.
- The yearly update was missed, so a valid-looking IEC is deactivated on the day you file.
Service exporters and online sellers
Businesses that export services need an IEC only if they want to claim Foreign Trade Policy benefits. Online sellers who ship goods abroad, including through courier and postal channels, are exporting goods and need an IEC like any other exporter. The courier or postal export procedure is simpler, but it still records your IEC.
Quick checks before your first shipment
- The IEC status on the DGFT portal shows active.
- The IEC name and address match the invoice and the GST registration exactly.
- The AD code is registered at the port you will actually use.
- Someone owns the April to June update.