What is IEC?
IEC (Importer Exporter Code) is a 10-digit code issued by DGFT (Director General of Foreign Trade), Department of Commerce, Government of India, to an applicant. This code is mandatory for export from India or Import to India. No person or entity shall make any Import or Export without an IEC.
IEC is issued against the PAN of a company, firm or proprietorship. One PAN can have only one IEC. IEC is a lifelong code and doesn't require any renewal.
IEC is required by the exporter at the time of export and by the importer while importing. IEC is required/quoted wherever prescribed for import/export documentation and customs procedures.
Key Points
- Mandatory for import/export
- 10-digit unique code
- Issued against PAN
- Lifelong validity
- Annual online confirmation required every year (1 April – 30 June), even if no details have changed
Eligibility
Who can apply for IEC?
Individuals
Any individual with a valid PAN card can apply for IEC for personal business purposes.
Companies & Firms
Private/Public Limited Companies, LLPs, Partnership Firms, and Proprietorship concerns.
Other Entities
Trusts, Societies, NGOs, and other legal entities with valid PAN registration.
Who is exempted from IEC
As per Para 2.07 of the DGFT Handbook of Procedures 2023, the following do not need an IEC: Central/State Government ministries and departments; persons importing or exporting goods for personal use unconnected with trade, manufacture, or agriculture; and certain low-value, non-commercial trade with Nepal, Bhutan, Myanmar (via Indo-Myanmar border areas), and specified China border points, subject to prescribed value limits.
Where is IEC Used?
- Sending goods out of India (your IEC need to be mentioned on the shipping bill)
- Bringing goods into India (your IEC need to be mentioned on the bill of entry)
- Applying for DGFT schemes such as Advance Authorisation and EPCG
- Applying for RCMC, where a valid IEC is required.
- Logging in and filing on the DGFT portal and Trade Connect
- Applying for a Certificate of Origin
- Exporting through courier and e-commerce, subject to applicable conditions.
- Apart from regular import and export shipments, an active IEC is also required for various other official trade and regulatory purposes.
Documents Required for IEC
Basic Documents (For All Entities)
- PAN Card of the entity
- Address Proof (Electricity Bill/Rent Agreement/Sale Deed etc.)
- Bank Certificate in prescribed format
- Digital Photograph of the Applicant
- Digital Signature of the Applicant
Entity-Specific Documents
For Companies
- Certificate of Incorporation
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- List of Directors
For Partnership Firms
- Partnership Deed
- Partners' ID Proofs
For Proprietorship
- Proprietorship Declaration
- Proprietor's ID Proof
IEC Application Process
Registration on DGFT Website
First, the applicant needs to register on the DGFT website (dgft.gov.in) with their email ID and mobile number.
Login and Apply for IEC
After registration, login to the DGFT website and apply for IEC under “Services” → “Import Exporter Code (IEC)” → “Apply for IEC”.
Fill the Application Form
Fill in all the required details in the application form, such as entity details, bank details, director/partner/proprietor details, etc.
Upload Documents
Upload all the required documents as mentioned in the documents section.
Pay the Fees
Pay the application fees of Rs. 500/- through net banking.
Submission and Tracking
Submit the application and track the status through the DGFT website.
Download IEC
Once the application is approved, download the IEC certificate from the DGFT website.
Benefits of IEC
Mandatory for International Trade
IEC is mandatory for export from India or import to India. No person or entity shall make any Import or Export without IEC.
Foreign Trade Policy Benefits
IEC holder can avail various benefits under the Foreign Trade Policy like duty exemption schemes, export promotion schemes, etc.
Duty Drawback
IEC holder can claim duty drawback and other export incentives on exports.
Concessional Import Rates
IEC holder can import goods at concessional rates of duty under various schemes.
Recognition as Exporter/Importer
IEC gives recognition to the entity as an authorised exporter/importer.
Access to International Markets
IEC enables businesses to access international markets and expand their business globally.
Modification & Management of IEC
Modification in IEC
If there is any change in the details of the IEC holder, such as address, phone number, email ID, bank details, etc., the same needs to be updated in the IEC. The modification can be done online through the DGFT website.
Common Modifications
- Change of Address
- Change of Phone Number/Email
- Change of Bank Details
- Change of Directors/Partners
- Change of Name of the Entity
Annual Compliance
As per the recent notification by DGFT, all IEC holders are required to update their IEC details online every year during the April-June period.
IEC holders must confirm or update their details on the DGFT portal every year between 1 April and 30 June, even if there is no change in the information. Failure to do so results in automatic deactivation of the IEC from 1 July, and no import/export or customs clearance can take place until it is reactivated.
Reactivation is done online through the DGFT portal. A government fee of ₹200 may be applicable, depending on the nature of the update. We recommend confirming the exact applicability with our team at the time of filing.
IEC Fees
| Action | Government Fee |
|---|---|
| New IEC application | ₹500 (one-time) |
| Annual confirmation, filed by 30 June | Free |
| Update/reactivation after 30 June, or any modification of details | ₹200 may apply – confirm with our team |
Cancellation of IEC
If the IEC holder wants to surrender the IEC, they can apply for cancellation of IEC through the DGFT website.
