Import Export Code (IEC)

IEC code for import/export businesses.

An Importer Exporter Code is a ten-digit code issued by the DGFT that is mandatory for anyone importing into or exporting out of India, and since 2017 it has simply been your PAN — one PAN, one IEC. It is free to obtain and takes a day or two, and the part that actually catches businesses out is the annual update: an IEC that is not confirmed between April and June each year is deactivated, and a deactivated IEC stops a consignment at customs.

Who this is for

Lifetime validity
No renewal
Customs clearance
International payments

The process

What we actually do

1
We check whether you actually need one
Goods imported or exported for personal use, and imports or exports by government departments, are exempt. Service exporters generally do not need an IEC unless they are claiming a benefit under the Foreign Trade Policy — which is a distinction worth making before applying.
2
We file on the DGFT portal against your PAN
The application needs the PAN, an address proof, a cancelled cheque or bank certificate, and a digital signature or Aadhaar authentication. There is no government fee.
3
We link it to your bank and customs records
The IEC has to be registered with the bank handling your foreign exchange and reflected in the customs system. An IEC that exists but is not linked stalls the first consignment.
4
We set the annual update reminder
Between April and June every year the IEC must be confirmed on the DGFT portal, even where nothing has changed. This is the single commonest reason a working IEC stops working, and the discovery is usually made by a consignment sitting at a port.
5
We deal with modifications and reactivation
Address, bank or director changes are updated on the portal. A deactivated IEC is reactivated by completing the update, but a consignment waiting on it accrues demurrage in the meantime.

Who this is for

Anyone importing goods into India for business
Exporters of goods, and service exporters claiming benefits under a foreign trade policy scheme
E-commerce sellers shipping internationally, including through courier mode
Businesses receiving payment from abroad where the bank asks for an IEC
Anyone whose existing IEC has been deactivated for not being updated

How long it takes

One to two working days for a new IEC where the documents are in order. The annual update is same-day. Reactivating a deactivated IEC takes as long as the update, but the consignment does not wait for free.

If you do nothing

Without an IEC no consignment moves — customs will not clear it and the bank will not process the payment. With a deactivated one the failure is worse, because it is discovered at the port rather than before the shipment: the goods sit accruing demurrage while a filing that takes an afternoon is completed.

The law, in figures

Dates, thresholds and sections

Every figure below carries the provision it comes from, so it can be checked.
What	Figure	Source
Requirement	Mandatory for import and export of goods	Section 7, Foreign Trade (Development and Regulation) Act 1992
Code	The PAN itself — one IEC per PAN	DGFT Trade Notice 09/2015-20 dated 12 June 2017
Government fee	₹500 application fee on the DGFT portal	DGFT e-IEC application
Annual update	Mandatory between April and June each year, even where nothing has changed	DGFT Notification 58/2015-2020 dated 12 February 2021
Consequence of not updating	The IEC is deactivated	DGFT Notification 58/2015-2020
Validity	Permanent, subject to the annual update	DGFT Notification 58/2015-2020

What usually goes wrong

Missing the April-to-June annual update, which deactivates a working IEC without warning
Applying for a second IEC for a second business on the same PAN — one PAN gets one IEC
Not linking the IEC to the bank account handling foreign exchange, which stalls the first payment
Leaving the address on the IEC stale after a move, which mismatches against customs records
Assuming a service exporter needs one when no Foreign Trade Policy benefit is being claimed

What non-compliance costs

Deactivation of the IEC where the annual update is missed
Goods cannot clear customs without a valid IEC, and demurrage runs while it is resolved
Penalty under the Foreign Trade (Development and Regulation) Act for contravention
Foreign Trade Policy benefits are unavailable while the IEC is inactive

These are statutory amounts, not our fees. What we charge depends on your situation and is quoted before any work starts.

Not to be confused with

These come up in the same conversation and are routinely treated as the same thing. They are not.

GST registration

Exports are zero-rated supplies and still need GST registration and returns. The IEC authorises the movement of goods; GST governs the tax on it. Both are needed.

AD Code registration

The Authorised Dealer code links your bank to a specific port and must be registered at each port you ship from. It is separate from the IEC and is the other thing that stops a first shipment.

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