The Import Export Code (IEC) is a mandatory 10-digit registration for any business or individual in India intending to participate in international trade. This unique code is a prerequisite for both importing goods and exporting products or services. Securing this registration is the first compliance measure for formally engaging in cross-border commerce.
Understanding the Import Export Code (IEC)
The Import Export Code is a unique 10-digit alphanumeric identification number issued by the Directorate General of Foreign Trade (DGFT). Operating under the Foreign Trade (Development & Regulation) Act, 1992, it functions as a permanent identification for the entity in international transactions.
The code is directly linked to the applicant’s Permanent Account Number (PAN). For most applicants, the IEC is effectively the same as the entity’s PAN, simplifying identification for government agencies. The DGFT issues the code separately, ensuring all foreign trade activities are tracked against a single, verifiable business identity.
Why an IEC Number is Necessary for Trade
A valid IEC is a mandatory legal requirement for customs authorities to clear shipments, whether they are incoming imports or outgoing exports. Without this unique registration number, goods cannot be processed through the Indian customs system, halting the trade transaction. The code acts as the primary business identifier for trade facilitation and regulation.
The IEC is also required by banks and financial institutions to remit or receive foreign currency payments related to international trade activities. Banks must have a valid IEC on record to process the flow of funds for both import purchases and export sales.
Furthermore, the code is necessary for exporters to leverage various government benefits, incentives, and export promotion schemes offered under the Foreign Trade Policy. These schemes, such as duty drawbacks and subsidies, support Indian businesses internationally. The IEC ensures that only recognized and compliant entities can access these financial advantages.
How to Apply for an IEC Number
The application process for the Import Export Code is entirely online and paperless, conducted through the official portal of the Directorate General of Foreign Trade. The first step involves creating a user profile on the DGFT website using the entity’s PAN, mobile number, and email ID. These details are verified through a one-time password (OTP) process, linking the user’s identity to the trade regulatory platform.
Once logged in, the applicant navigates to the designated services section and selects the option to apply for a new IEC. The system prompts the user to fill out the application form, which requires comprehensive details about the business, including its structure, address, and the specifics of its proprietors, partners, or directors.
The application requires the digital submission of supporting documents, uploaded in the prescribed format. After completing all required fields and attaching documents, the applicant pays the non-refundable application fee online. The final submission is authenticated using an Aadhaar-based OTP or a Digital Signature Certificate (DSC).
Upon successful submission, the DGFT system processes the application, and the IEC is generally issued quickly, often within a few days. The applicant receives the e-IEC certificate via email, which can also be downloaded from the DGFT portal.
Key Documents and Information Required
The online application requires a precise set of documents and information to confirm the identity and legitimacy of the business entity. The most fundamental requirement is the Permanent Account Number (PAN) details of the firm, as the IEC is based on this identification.
Required Documents
Proof of establishment or incorporation, such as a partnership deed or a certificate of incorporation, depending on the legal structure.
A bank certificate or a cancelled cheque bearing the entity’s pre-printed name to verify the operational bank account for foreign exchange transactions.
Address proof for the firm, such as a sale deed, lease agreement, or a recent utility bill.
Details of the proprietor, partners, or directors, including their PANs.
If the address proof is not in the firm’s name, a No-Objection Certificate (NOC) from the premises owner, along with the owner’s address proof, must be provided.
Maintaining and Updating the IEC
While the IEC is issued with lifetime validity, its maintenance involves a mandatory annual compliance requirement. Every IEC holder must electronically update or validate their details between April and June of each year, even if no changes have occurred. This process ensures the DGFT database remains current and accurate.
Failure to complete this annual electronic update by June 30th results in the deactivation of the IEC. A deactivated code prevents the holder from conducting any further import or export activities, as it will not be recognized by the Customs system.
A deactivated IEC can be reactivated only after the holder completes the overdue electronic update and confirms the details on the DGFT portal. Additionally, any changes to registered particulars, such as address, ownership structure, or bank details, must be promptly updated through the online modification process.
Entities Exempted from Needing an IEC
Specific categories of importers and exporters are exempted from obtaining a formal IEC registration. This exemption covers certain government entities and individuals engaged in non-commercial activities.
All Ministries and Departments of the Central Government or State Governments are not required to hold an IEC. Persons or entities importing or exporting goods for personal use, not connected with trade, manufacture, or agriculture, are also generally exempt. However, if any exempted entity wishes to avail benefits under the Foreign Trade Policy, they may be required to obtain an IEC.