What is IEC?
A 10-digit Import Export Code issued by the DGFT, mandatory for importing or exporting from India.
Who issues it?
The Directorate General of Foreign Trade, under the Foreign Trade (Development and Regulation) Act, 1992.
What does it cost?
A one-time government fee of Rs 500 on the DGFT portal.
How long does it take?
Usually 1 to 3 working days once documents are correct.
Is renewal needed?
No renewal, but a mandatory annual update between April and June keeps it active.
If your business plans to import goods, export goods or earn foreign exchange from services, the first registration you need is an Import Export Code. It is inexpensive, fully online and usually issued within days, but a yearly update rule trips up many holders. This guide explains what an IEC is, who needs it, the DGFT process and the annual update that can deactivate your code if missed.
What is an Import Export Code?
An Import Export Code (IEC) is a 10-digit business identifier issued by the Directorate General of Foreign Trade (DGFT) that every Indian business must hold before it can legally import or export goods, under Section 7 of the Foreign Trade (Development and Regulation) Act, 1992. After GST, the IEC number is the same as the firm PAN, but a separate DGFT application is still required to activate it.
Key terms explained
- DGFT: Directorate General of Foreign Trade, the authority under the Ministry of Commerce and Industry that issues IECs.
- ANF-2A: The application form used on the DGFT portal to apply for or update an IEC.
- AD Code: Authorised Dealer Code from your bank, registered at the port to enable customs clearance, separate from the IEC.
- FTDR Act: The Foreign Trade (Development and Regulation) Act, 1992, the parent legislation for foreign trade.
Who needs an IEC?
Any person, proprietorship, partnership, LLP, company, trust, HUF or society that imports goods into India or exports goods out of India needs an IEC. Service exporters who receive foreign exchange generally need it too, especially to claim zero-rated GST benefits, with limited exceptions for very small freelancers below RBI thresholds.
An IEC is a prerequisite for customs clearance, so without it customs will not release an import consignment and a bank may not process certain foreign exchange remittances.
Legal framework
The IEC is granted under Section 7 of the Foreign Trade (Development and Regulation) Act, 1992, read with Chapter 1 of the Foreign Trade Policy 2023. The mandatory annual update requirement was introduced by DGFT Notification No. 58/2015-2020 dated 12 February 2021, which requires every holder to confirm details between April and June each year.
How to apply for an IEC on the DGFT portal
Register on the DGFT portal. Create a user account at dgft.gov.in using your PAN and a valid mobile and email.
Start the IEC application. Select Apply for IEC and open Form ANF-2A.
Enter business and bank details. Provide the entity name, address, PAN and bank account information.
Upload documents. Attach the address proof and a cancelled cheque or bank certificate in the required format.
Pay the fee and authenticate. Pay the Rs 500 government fee and sign using Aadhaar OTP or a digital signature.
Receive the e-IEC. On approval, the e-IEC certificate is generated for download, usually within 1 to 3 working days.
Documents required
- PAN of the business or proprietor.
- Address proof of the business (utility bill, rent agreement or ownership proof).
- Cancelled cheque or a bank certificate of the current account.
- Aadhaar of the signatory for OTP based authentication, or a digital signature.
IEC at a glance
| Item | Detail |
|---|---|
| Issuing authority | DGFT, Ministry of Commerce and Industry |
| Government fee | Rs 500 (one time) |
| Processing time | 1 to 3 working days |
| Validity | Lifetime, subject to annual update |
| Annual update window | 1 April to 30 June each year |
Disclaimer: The government fee shown is indicative and does not constitute a binding offer. Any professional charges depend on the volume and complexity of the work involved.
The annual update rule
Even though an IEC never expires, every holder must log in to the DGFT portal between 1 April and 30 June each year and confirm or update the IEC details, regardless of whether anything has changed. The update itself is free.
If you miss the window, the IEC is automatically deactivated, which means customs will reject your shipments until you complete the pending update. Reactivation is immediate once the update is filed.
Common mistakes to avoid
- Skipping the annual update. A deactivated IEC blocks customs clearance until corrected.
- PAN or name mismatch. Details must exactly match PAN records, or the application is rejected.
- Assuming PAN equals IEC. Post-GST the number matches PAN, but you still must apply to activate it.
- Forgetting the AD Code. Customs clearance also needs your bank AD Code registered at the port, which is separate from the IEC.
Consequences of non-compliance
Trading in goods without an IEC is not permitted under Section 7 of the Foreign Trade (Development and Regulation) Act, 1992, so customs will not clear consignments. A lapsed annual update results in deactivation, halting imports and exports until the update is completed on the DGFT portal.
How the IEC fits with GST and customs
The IEC, the GST registration and the bank AD Code work together: the IEC identifies you to DGFT and customs, GST handles the indirect tax and zero-rating on exports, and the AD Code links your bank to the port for clearance and foreign exchange. An exporter usually needs all three before the first shipment moves.
Key takeaways
- An IEC is a 10-digit DGFT code mandatory for importing or exporting goods from India.
- It costs Rs 500, is usually issued in 1 to 3 working days and has lifetime validity.
- A mandatory annual update between April and June keeps it active.
- Missing the update deactivates the IEC and stops customs clearance until corrected.
Frequently asked questions
Do I need an IEC to export services?
Service exporters receiving foreign exchange generally need an IEC, particularly to claim zero-rated GST benefits, with narrow exceptions for very small freelancers below RBI thresholds.
Is IEC the same as my PAN?
Post-GST the IEC number equals your PAN, but you must still apply on the DGFT portal to activate IEC status.
How much is the IEC government fee?
The government fee is Rs 500, paid once during the online application on the DGFT portal.
What is the IEC annual update?
Every IEC holder must confirm or update their details on the DGFT portal between April and June each year, even with no changes, to keep the code active.
What happens if my IEC is deactivated?
Customs rejects your shipments until you complete the pending annual update, after which reactivation is immediate.
Can an individual get an IEC?
Yes. A sole proprietor or individual engaged in import or export can obtain an IEC against their PAN.
IEC code kaise banaye?
dgft.gov.in par account banayein, Form ANF-2A bharein, PAN aur bank details dein, documents upload karein, Rs 500 fees jama karein aur Aadhaar OTP se sign karein.
Do I need a separate IEC for each product?
No. One IEC covers all your import and export activity across products.
Need help with IEC registration?
Getting trade-ready often means the IEC plus the AD Code and GST setup together. Learn more about IEC registration support from Regikart or reach our team on [phone] or [WhatsApp].
About the author
Gaurav
Senior Advisor at Regikart. Want to discuss this in the context of your business?
