Import Export Code (IEC) registration with DGFT

Law

FT(D&R) Act 1992, s. 7; Foreign Trade Policy 2023

Issued by

DGFT, online

Government fee

About ₹500, one time

Validity

Lifetime, with annual updation April to June

Who needs an IEC

Every business that imports goods into India or exports goods out of India needs an IEC: manufacturers, traders, e-commerce sellers shipping abroad, and service exporters who want to claim benefits under the Foreign Trade Policy. Customs will not process a bill of entry or shipping bill without it, and banks ask for it before remitting import payments or realising export proceeds.

One IEC is issued per PAN. A proprietor obtains it on his or her personal PAN; a partnership firm, LLP or company on its own PAN. Branches and additional premises are added to the same IEC rather than applied for separately.

The Handbook of Procedures exempts a few categories, chiefly imports and exports for personal use not connected with trade or business, and certain government ministries, departments and notified charitable organisations. If you import even occasionally for resale or for use in business, you need your own IEC.

How the IEC application works

1. Register on the DGFT portal with the applicant's mobile number and email, and log in.
2. Fill form ANF-2A: entity details, PAN, address, bank account, partners or directors, branch details and nature of business. GSTIN details are added where the business is registered.
3. Upload the address proof of the premises and a cancelled cheque or bank certificate in the entity's name.
4. Sign the application with a digital signature certificate or Aadhaar-based e-sign, and pay the fee online.
5. The IEC is generated electronically and can be downloaded from the portal, usually within a few working days, and often the same day where data validates cleanly.

The bank account and address must match the PAN records and the GST registration. Most rejections and queries arise from a mismatch in name, address or bank details.

Annual updation, deactivation and reactivation

Since 2021, every IEC holder must update or confirm its IEC details online every year between April and June, even if nothing has changed. If the updation is not done by 30 June, the IEC is deactivated, and any shipment filed against it will be held at customs.

A deactivated IEC can be reactivated by completing the updation on the DGFT portal, after which the status is restored. Any change during the year, such as a new address, change of partners or directors, a new branch or a new bank account, should be filed as a modification as soon as it happens rather than waiting for the annual window.

Registrations you will need after the IEC

The IEC is the first step, not the last. Depending on what you trade, you will usually also need:

• GST registration and LUT: exports are zero-rated under the IGST Act. A registered exporter can export without paying IGST by filing a Letter of Undertaking each year, or pay IGST and claim a refund.
• ICEGATE registration and AD code: the bank's Authorised Dealer code must be registered at each port of export so that export incentives and refunds flow to your account.
• RCMC: a Registration-cum-Membership Certificate from the relevant export promotion council, such as APEDA for agricultural products or FIEO for multi-product exporters, to claim benefits under the Foreign Trade Policy.
• Product licences: food importers need an FSSAI Central licence, importers of pre-packaged goods need LMPC registration, and some goods need BIS, drug, plant quarantine or other approvals.

Common mistakes with IEC

• Missing the annual updation. This is the single most common reason for shipments getting stuck. Put a reminder in April every year.
• Applying in the proprietor's name when the business is a company. The IEC must be in the name of the entity that imports or exports, matching the invoices and bank account.
• Not updating directors or partners. Customs and DGFT records are checked against MCA and GST data; mismatches can delay clearance.
• Assuming the IEC is enough for restricted items. Goods that are restricted or prohibited under the ITC(HS) classification need a separate authorisation, whatever your IEC status.
• Using an IEC that has been placed on the Denied Entity List for default in export obligation or other violations. Such issues must be resolved with the DGFT before trade resumes.

IEC for e-commerce, courier and service exporters

Small exporters selling abroad through online marketplaces or their own websites often ship by courier or post. They still need an IEC: customs processes courier and postal exports against the exporter's IEC, and the Department of Posts' Dak Ghar Niryat Kendras accept export parcels only from exporters with an IEC and the related registrations. Marketplace programmes for Indian sellers also ask for the IEC at onboarding.

Service exporters, such as IT, design, consulting and content businesses, do not file shipping bills, so customs never asks for their IEC. They need one only where they wish to claim Foreign Trade Policy benefits, although some banks ask for it when processing inward remittances for exports of services. For both goods and services, export proceeds must be realised through an authorised dealer bank within the period permitted by the Reserve Bank under FEMA, and the bank's realisation records are reported electronically against your IEC.

Importers buying goods from abroad on online platforms for business use, for example components or samples, also need the IEC in the name of the business; imports in a personal name for business purposes create GST credit and accounting problems later.

Consequences of trading without a valid IEC

Import or export without a valid IEC is a contravention of the Foreign Trade (Development and Regulation) Act, and the DGFT can impose penalties and suspend or cancel the IEC. Customs can hold or confiscate goods under the Customs Act, 1962 where the documents are not in order. In practice, the immediate consequence is commercial: containers sit at port, demurrage builds up, and buyers lose confidence. If customs has already detained goods, a customs lawyer should review the matter promptly.

Documents you need

The documents depend on the type of entity. For a proprietorship, personal documents of the proprietor are used.

• PAN card of the entity (or of the proprietor)
• Aadhaar of the proprietor, managing partner or director signing the application
• Certificate of incorporation, LLP certificate or partnership deed, as applicable
• Address proof of the business premises: electricity bill, rent agreement or sale deed
• Cancelled cheque or bank certificate in the entity's name
• GST registration certificate, if registered
• Digital signature certificate or Aadhaar-linked mobile for e-sign
• Mobile number and email ID for the DGFT login

How we handle it for you

1. Check entity and data

   We confirm the applicant entity and match PAN, GST, address and bank details.

2. Prepare ANF-2A

   We fill the application with correct branch, business and partner or director details.

3. File and track

   The application is signed, paid and filed on the DGFT portal, and we track it to issue.

4. Set up customs readiness

   We guide you through LUT, ICEGATE, AD code and RCMC registrations as needed.

5. Annual updation

   We file the IEC updation every April to June so the code stays active.

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Frequently asked questions