The Import Export Code (IEC) is a unique 10-digit identification number issued by the Directorate General of Foreign Trade (DGFT), which is part of the Ministry of Commerce and Industry, Government of India. This code is assigned to businesses or individuals that are involved in importing into or exporting from India, serving as an essential business identification for cross-border trade.

Why does the IEC matter?

  • It is a mandatory legal requirement: Under Indian law, you cannot import or export goods or services unless you have an IEC, except for a few specific exemptions (such as most exports of services unless the exporter wishes to access benefits under the Foreign Trade Policy).

  • Each IEC is linked to just one person or business entity, ensuring unique identification for all international trade transactions.

  • The introduction of GST has led to the IEC being directly linked with the entity’s PAN number, but the code itself is still issued separately by DGFT after a formal application process.

  • The IEC does not distinguish by type of applicant: any business entity, including individuals, sole proprietorships, partnerships, LLPs, companies, trusts, societies, or HUFs (Hindu Undivided Families) can apply, regardless of size or turnover.

  • Think of the IEC as your business’s passport for global trade: without it, customs will not clear your shipments, banks will not process your international transactions, and you cannot legally take part in most foreign trade activities.

Form and function:

  • The code is strictly numerical (10 digits) and is valid for the lifetime of the entity unless surrendered or canceled for legal reasons.

  • Once assigned, it serves as the core of the business’s “importer-exporter profile” in government records, and enables automatic access to various government trade statistics and incentive schemes1.

Is IEC Code Imperative? Who Needs It?

Yes, the Import Export Code (IEC) is absolutely imperative for anyone who intends to import into or export from India, whether goods or services. It is a core legal requirement set by the Indian government—without it, no individual or entity can lawfully enter into international trade, except for certain specified exemptions.

No matter the size of the business—whether you’re a solo entrepreneur, a new startup, a small shop, a partnership firm, an LLP, a private/public company, a trust, a society, or even a Hindu Undivided Family (HUF)—if your goal is to buy from or sell to international markets, obtaining an IEC is non-negotiable.

Why is this important? Customs departments, shipping companies, and banks all require the IEC for processing import/export shipments and international payments. Without it, your goods can get held up at the border or your payments may not be processed by banks. If you want to ease your import-export journey and avoid legal hassles, consult professionals like Kyna Fintax who specialize in guiding businesses through the IEC application process and compliance.

It’s not just about compliance—having an IEC also opens access to various government schemes and incentives available for exporters. For instance, if your business ever wants to claim a refund or incentive under India’s Foreign Trade Policy, the IEC will be your ticket to those benefits.

Validity of Import Export Code (IEC)

Once you obtain the IEC, it remains valid for the entire lifetime of the business entity or individual to whom it is issued. That means unlike many licenses and registrations that need periodic renewal, you don’t have to apply for IEC renewal again and again. Its lifetime validity provides great convenience and clarity for businesses engaged in international trade.

However, while the IEC itself does not expire, there is one important requirement: the government mandates an annual updation of IEC details electronically between April and June each year. This annual update essentially confirms that the IEC holder is still active in import-export business and reviews/contact details remain current. If you fail to update your IEC details during this window, the DGFT can deactivate your IEC temporarily until updates are made, which might cause disruption in customs and banking processes.

Additional points on validity:

  • If your business entity undergoes structural changes (like change in PAN, constitution, or address), you must update the IEC details with the DGFT.

  • The IEC can be voluntarily surrendered or canceled if the business ceases import-export operations.

  • Since the IEC is linked with your PAN, changes or cancellation of PAN can also affect your IEC status.

From a practical standpoint, this lifetime validity combined with required annual updates means you get a stable and continuous identification for your import-export activity—as long as you keep your details valid yearly. Missing the update may temporarily block international trade activities, so it’s wise to set reminders for this annual compliance.

Purpose of Import Export Code (IEC)

The IEC serves as the primary identification for any business or individual engaging in international trade involving India. It fulfills several important and practical functions that ensure smooth, legal, and transparent cross-border transactions.

Key purposes include:

  • Legal Compliance: The IEC is a mandatory requirement by the government and customs authorities. It ensures that only registered and recognized entities participate in import and export, helping regulate and monitor India’s foreign trade.

  • Customs Clearance: When shipments come into or go out of India, customs officials use the IEC to track and authorize the movement of goods. Without an IEC, customs clearance is not possible.

  • Banking and Financial Transactions: Banks require the IEC to process payments and receipts related to international trade. This helps in maintaining legal and fiscal transparency, preventing money laundering and illegal transactions.

  • Access to Government Incentives and Schemes: The government of India offers various export promotion schemes, subsidies, and refunds to encourage foreign trade growth. Having an IEC is essential to avail these financial benefits.

  • Enhanced Business Credibility: An IEC shows foreign and domestic partners that the business is officially recognized and compliant with regulations. This fosters trust and can open more opportunities in global markets.

  • Trade Data and Statistical Tracking: The government uses IEC data to compile trade statistics and monitor trends in imports and exports, which helps in policy formulation.

Purpose of Import Export Code (IEC)

The IEC serves as the primary identification for any business or individual engaging in international trade involving India. It fulfills several important and practical functions that ensure smooth, legal, and transparent cross-border transactions.

Key purposes include:

  • Legal Compliance: The IEC is a mandatory requirement by the government and customs authorities. It ensures that only registered and recognized entities participate in import and export, helping regulate and monitor India’s foreign trade.

  • Customs Clearance: When shipments come into or go out of India, customs officials use the IEC to track and authorize the movement of goods. Without an IEC, customs clearance is not possible.

  • Banking and Financial Transactions: Banks require the IEC to process payments and receipts related to international trade. This helps in maintaining legal and fiscal transparency, preventing money laundering and illegal transactions.

  • Access to Government Incentives and Schemes: The government of India offers various export promotion schemes, subsidies, and refunds to encourage foreign trade growth. Having an IEC is essential to avail these financial benefits.

  • Enhanced Business Credibility: An IEC shows foreign and domestic partners that the business is officially recognized and compliant with regulations. This fosters trust and can open more opportunities in global markets.

  • Trade Data and Statistical Tracking: The government uses IEC data to compile trade statistics and monitor trends in imports and exports, which helps in policy formulation.

The IEC is much more than just a code—it is the legal foundation and operational key that allows businesses in India to confidently and compliantly engage in international markets. For hassle-free application and to understand how the IEC benefits your specific business, consulting experts like Kyna Fintax can be a valuable step.

Application for IEC

Applying for an Import Export Code (IEC) is a straightforward process that can be completed online through the official Directorate General of Foreign Trade (DGFT) portal. The government has designed this process to be accessible, efficient, and paperless, allowing businesses and individuals across India to obtain their IEC quickly.

How to apply:

  1. Visit the DGFT Website: Begin by accessing the DGFT’s official online portal dedicated to IEC applications.

  2. Registration: If you are a first-time applicant, you need to register on the portal by providing basic details such as your email ID, mobile number, and creating a login password.

  3. Filling the Application Form: Once registered, fill out the IEC application form online. Key information required includes the applicant’s PAN (Permanent Account Number), business name, address, contact details, and bank account information.

  4. Upload Required Documents: You will need to upload scanned copies of essential documents such as:

    • PAN card of the entity or individual

    • Address proof of the business or individual

    • Cancelled cheque or a bank certificate with the applicant’s bank account details

    • Aadhaar card, passport, or voter ID of the individual or authorized signatory

    • Business registration proof, if applicable (like partnership deed, certificate of incorporation, etc.)

  5. Fee Payment: A nominal government fee, currently ₹500 (as of 2025), must be paid online through net banking, credit card, or debit card as part of the application process.

  6. Submit and Track: After submitting the form and payment, the application is processed by the DGFT. You can track the status online using your application number.

  7. IEC Issuance: Typically, the IEC is issued by email within a few working days if the documents and information are in order, eliminating the need for physical visits or paperwork.

Why is this process important?

A smooth and error-free application helps avoid delays in receiving your IEC, ensuring faster clearance for imports and exports. Having your IEC ready means you can immediately start or expand your international trade operations without legal hurdles.

For personalized guidance in complex cases or to avoid mistakes in the application, professional help from experts like Kyna Fintax can be invaluable. They offer step-by-step support to ensure your IEC application is complete and compliant with all DGFT requirements.

Application for IEC

Applying for an Import Export Code (IEC) is a straightforward process that can be completed online through the official Directorate General of Foreign Trade (DGFT) portal. The government has designed this process to be accessible, efficient, and paperless, allowing businesses and individuals across India to obtain their IEC quickly.

How to apply:

  1. Visit the DGFT Website: Begin by accessing the DGFT’s official online portal dedicated to IEC applications.

  2. Registration: If you are a first-time applicant, you need to register on the portal by providing basic details such as your email ID, mobile number, and creating a login password.

  3. Filling the Application Form: Once registered, fill out the IEC application form online. Key information required includes the applicant’s PAN (Permanent Account Number), business name, address, contact details, and bank account information.

  4. Upload Required Documents: You will need to upload scanned copies of essential documents such as:

    • PAN card of the entity or individual

    • Address proof of the business or individual

    • Cancelled cheque or a bank certificate with the applicant’s bank account details

    • Aadhaar card, passport, or voter ID of the individual or authorized signatory

    • Business registration proof, if applicable (like partnership deed, certificate of incorporation, etc.)

  5. Fee Payment: A nominal government fee, currently ₹500 (as of 2025), must be paid online through net banking, credit card, or debit card as part of the application process.

  6. Submit and Track: After submitting the form and payment, the application is processed by the DGFT. You can track the status online using your application number.

  7. IEC Issuance: Typically, the IEC is issued by email within a few working days if the documents and information are in order, eliminating the need for physical visits or paperwork.

Why is this process important?

A smooth and error-free application helps avoid delays in receiving your IEC, ensuring faster clearance for imports and exports. Having your IEC ready means you can immediately start or expand your international trade operations without legal hurdles.

IEC Registration Process

Registering for an Import Export Code (IEC) is a fairly simple and fully online procedure handled by the Directorate General of Foreign Trade (DGFT). Here’s how the entire process typically works:

  1. Create an Account on DGFT Portal:
    If you are a new user, the first step is to register your email ID and mobile number on the DGFT’s IEC registration portal. This creates your login credentials to access the IEC application system.

  2. Login and Fill Application Form:
    After registration, log in and start filling the online IEC application form. You need to provide details such as your PAN number, business name and address, bank account information, business constitution type, and authorized signatory details.

  3. Upload Required Documents:
    Upload scanned copies of all necessary documents including:

    • PAN card

    • Address proof

    • Bank cancelled cheque or bank certificate

    • Identity proof of the authorized signatory

    • Business registration documents (if applicable)

  4. Make Online Payment of Fees:
    Pay the government fee of ₹500 online using net banking, credit card, or debit card. Keep a receipt or confirmation for your records.

  5. Submit Application:
    Submit the completed application with all details and attachments. The system generates an application number for tracking.

  6. Processing by DGFT:
    The DGFT officials review your application and documents. If everything is in order, they approve the IEC issuance.

  7. Receive IEC Code via Email:
    Once approved, your unique 10-digit IEC code is sent electronically to your registered email address. There is no need for any physical visit or certificate collection.

  8. Start Your Import-Export Activity:
    Using your IEC, you can now legally engage in international trade, clear goods through customs, and perform banking transactions related to import-export.

Additional tips:

  • Ensure all your data and documents are accurate to avoid delays or rejection.

  • Keep scanned copies neat and readable.

  • If needed, take assistance from experts like Kyna Fintax who specialize in IEC registration and can guide you through document preparation, form filling, and compliance checks.

The IEC registration process is designed to be user-friendly and quick, helping you get your Import Export Code within a few business days to commence your international trade journey smoothly.

Government Fee for IEC Registration

When you apply for your Import Export Code (IEC) through the Directorate General of Foreign Trade (DGFT) portal, there is a nominal government fee that you need to pay as part of the application process. This fee is fixed by the government to cover the administrative costs of processing your application and issuing the IEC.

Current Fee Details (as of July 2025):

  • The official fee for IEC registration is ₹500 (Indian Rupees five hundred only).

  • This fee is non-refundable, regardless of whether your application is approved or rejected.

  • Payment is to be made online through the DGFT portal during your application submission.

  • Accepted payment modes typically include net banking, credit cards, and debit cards.

Additional Information:

  • There are no hidden charges or additional government fees required for the IEC.

  • Some third-party service providers or consultants may charge separate fees for assisting with documentation or filing the application, but these are not mandated by the government.

  • Choosing expert guidance from authorized consultants like Kyna Fintax might incur service charges, but these are for value-added services to simplify your process and ensure accurate filing.

Why is this fee important?

  • It ensures your application is formally processed by the government’s DGFT system.

  • Timely payment is essential to avoid delays or rejection of your IEC application.

  • Paying the fee online provides a receipt that validates your application submission and can be used for tracking.

The government fee for IEC registration is straightforward, affordable, and required upfront during your application. Paying this fee properly ensures smooth processing and timely issuance of your IEC, enabling your business to enter international trade without legal hitches.

If you want hassle-free payment and expert assistance with your IEC registration, consulting professionals like Kyna Fintax can save you time and prevent errors.

IEC is Linked with PAN

In India, the Import Export Code (IEC) is directly linked to the Permanent Account Number (PAN) of the applicant—be it an individual or a business entity. This linkage plays a crucial role in simplifying and streamlining the import-export registration and compliance process.

Why is this linkage important?

  • Unique Identification: PAN serves as a unique identifier for taxpayers in India. Linking IEC with PAN ensures that a single entity cannot obtain multiple IEC codes under different names or identities, preventing misuse and duplication.

  • Simplified Verification: Since PAN is already a well-established number verified by the Income Tax Department, attaching IEC to it allows DGFT to easily verify the identity and legitimacy of the applicant.

  • Tracking and Compliance: This linkage helps government authorities track taxable imports and exports efficiently, ensuring compliance with tax laws and foreign trade policies.

  • Ease of Updates: Changes related to PAN (such as corrections or deactivation in certain cases) automatically reflect in IEC-related records, keeping data consistent across government systems.

  • No Need for Separate GST or Tax Updates for IEC: Since IEC is tied to PAN, and PAN is linked to GST and other tax systems, compliance related to import-export activities becomes more integrated and less prone to errors.

Practical Insights:

  • To apply for IEC, a valid PAN number in the name of the business or individual applicant is a mandatory prerequisite.

  • If your PAN details change (for example, if you migrate to a different business structure or change your PAN), you must update your IEC information to reflect that change.

  • Linking IEC with PAN minimizes paperwork and speeds up IEC issuance since the tax identity is pre-established.

Annual Update Mandatory for IEC

Even though the Import Export Code (IEC) itself is valid for the lifetime of your business entity, the government requires every IEC holder to update their IEC details once every year. This annual update rule is mandatory under the Foreign Trade Policy and is essential for maintaining the active status of your IEC.

Key details about the annual update:

  • When to Update:
    The update window is open every year from 1st April to 30th June. You must submit your updated details during this timeframe.

  • What to Update:
    You need to confirm or update basic information such as your:

    • Business name and constitution

    • PAN details

    • Registered address

    • Contact details including phone number and email

    • Bank account details

    • Any changes in authorized signatories

  • How to Update:
    The update is done online on the DGFT portal by logging in with your IEC credentials. It is simple and does not require submitting fresh documents unless there are changes to be made.

  • Consequences of Not Updating:
    Failure to update your IEC details within this annual period can lead to temporary deactivation of your IEC by the DGFT. This means your IEC will not be valid for customs clearance, banking transactions, or availing government schemes, effectively halting your import-export operations until you update.

  • Reactivate on Update:
    Once you complete the online update, the IEC is typically reactivated immediately or within a short period, restoring your ability to trade internationally.

Why is this important?

  • Annual updates help the government maintain accurate and current trade records.

  • It ensures communication channels remain open for important trade notifications or policy updates.

  • Helps prevent fraudulent use of dormant or obsolete IECs.

  • Keeps your business compliant and avoids any disruption in your import-export activities.

Frequently Asked Questions (FAQs) on Import Export Code (IEC)

1. What is an Import Export Code (IEC)?

The IEC is a unique 10-digit identification number issued by the Directorate General of Foreign Trade (DGFT), required for anyone involved in importing to or exporting from India.

2. Is it mandatory to have an IEC for all import and export activities?

Yes, IEC is mandatory for all import and export transactions in India, except for a few exempted cases. Without it, customs clearance and international banking are not possible.

3. Who needs to apply for an IEC?

Any individual, partnership, LLP, company, trust, society, or HUF who intends to import or export goods/services from India must obtain an IEC. Even if you are a small trader or a first-time exporter, you will need one.

4. How long is an IEC valid?

IEC is valid for the entire lifetime of the business or individual, with no need for renewal. However, the details must be updated annually on the DGFT portal to keep it active.

5. What documents are required for IEC application?

  • PAN card (individual/entity)

  • Proof of business address

  • Cancelled cheque or bank certificate

  • Aadhaar/passport/voter ID of the authorized person

  • Business registration proof, if relevant

6. How do I apply for IEC?

You must apply online via the DGFT portal, fill out the application form, upload mandatory documents, and pay the prescribed fee.

7. Can I apply for IEC offline?

No, the IEC application process is completely online through the DGFT portal.

8. What is the government fee for IEC registration?

As of July 2025, the government fee is ₹500, payable online while applying.

9. Is IEC linked to the PAN number?

Yes, your IEC is directly linked to your PAN, ensuring uniqueness and easy verification.

10. Is GST registration necessary for IEC?

GST registration is not mandatory to obtain IEC, but most businesses involved in regular import/export are required to comply with GST laws alongside IEC.

11. What happens if I don’t update my IEC annually?

If you fail to update your IEC between April–June each year, your code may be deactivated by the DGFT, halting your import-export activities until reactivation.

12. Can the IEC be surrendered or canceled?

Yes, if your business stops import-export operations or shuts down, you can request voluntary surrender or cancelation of the IEC with DGFT.

13. Are there any goods/services that do not require IEC?

Some categories such as exports/imports for personal use (not connected with trade, manufacturing, agriculture) and certain notified exempted services may not require IEC.

14. Do I need a Digital Signature Certificate (DSC) for IEC?

No, a digital signature is not mandatory; you can authenticate the application using Aadhaar-based OTP.

15. Can a business hold multiple IECs?

No, one business (based on PAN) is allowed only one IEC.

16. Is there any difference in process for various types of entities?

The process is almost similar for all, but different business types (individual, partnership, company, etc.) may need to submit their specific registration and identity documents.

17. How much time does it take to get IEC after application?

Usually, IEC is issued via email within 2–7 working days, provided all documents and details are in order.

18. What are common reasons for IEC application rejection?

  • Mismatched or incorrect document details

  • Invalid or expired PAN

  • Submission of incomplete documentation

  • Non-payment of the application fee

19. Can changes be made to an issued IEC?

Yes, you can modify IEC details (address, business constitution, etc.) online through the DGFT portal.

20. Whom should I contact for help with IEC application or compliance?

For a hassle-free experience with documentation, application, and compliance, services like Kyna Fintax are highly recommended; they simplify the process and help avoid errors.