Introduction
Import Export Code (IEC) is a unique 10-digit identification number granted to businesses or individuals engaged in importing or exporting goods and services from India. This code is issued by the Directorate General of Foreign Trade, which functions under the Ministry of Commerce and Industry, Government of India. Any person or entity intending to undertake international trade activities must obtain an IEC before starting import or export operations.
Is IEC Mandatory? Who Requires It?
Yes, obtaining an Import Export Code (IEC) is compulsory for anyone involved in international trade in India. Any individual or business entity that intends to import goods into India or export goods and services from India must secure an IEC before carrying out such transactions.
Even sole proprietors can apply for and obtain the IEC in their individual name, provided they are conducting import or export activities. The code is issued by the Directorate General of Foreign Trade and is essential for clearing shipments and processing international payments.
Get a Consultation by Expert
The Import Export Code (IEC) remains valid for the entire lifetime of the business and does not require periodic renewal. Once issued, it can be used continuously without the need for regular filings for validity purposes.
An IEC is applicable to all branches, units, or factories operating under the same entity, meaning a single code is sufficient for the entire organization.
For this reason, it is generally advisable for businesses to obtain an IEC in advance, even if they are not immediately engaged in import or export activities, so that they are prepared for future international trade opportunities.
The Import Export Code (IEC) serves as a mandatory identification number for businesses involved in international trade. Exporters are required to mention their IEC while carrying out shipments of goods or services from India.
Once obtained, the IEC can be used for all import and export transactions undertaken by the entity without the need for any additional approvals for each transaction. Without this code, a business cannot legally engage in cross-border trade.
Moreover, banks require the IEC details of exporters and importers to process and credit foreign currency payments received from overseas clients. The code is issued by the Directorate General of Foreign Trade and is essential for smooth international business operations.
The Import Export Code (IEC) registration is completed online through the official portal of the Directorate General of Foreign Trade. The procedure involves the following key steps:
Step 1: Visit the DGFT Portal
Go to the official DGFT website and navigate to the “Services” section. Select “IEC” and then choose the option for online IEC application.
Step 2: PAN Entry and Verification
Enter the Permanent Account Number (PAN) of the applicant entity.
Click on the “Search” option to proceed.
If an incorrect PAN is entered, use the “Reset” option and re-enter the correct details.
You will then be required to provide the following information for verification:
After filling in the details, click “Submit.”
If the details match the PAN database, a confirmation message stating that the PAN has been verified will appear. Then click on “Proceed.”
Note: Any mismatch in PAN details may result in authentication failure, so accuracy is crucial.
Step 3: Login for New IEC Application
For a fresh application, provide your valid email address and mobile number.
Enter the captcha code and click on “Generate OTP.”
An OTP will be sent to both your registered email ID and mobile number.
Enter the OTP and click “Submit.” If the OTP is not received, select “Regenerate OTP.”
Step 4: Fill Entity Details
After OTP verification, a 20-digit E-commerce reference number will be generated.
You must then enter comprehensive details, including:
Entity name and address
City, State, District, and PIN code
Mobile number and email ID
PAN details and date of incorporation
Nature of business (Proprietorship, LLP, Private Limited, etc.)
Business activities (Manufacturer Exporter, Merchant Exporter, Service Provider, etc.)
Bank account details
Applicant’s personal information
Click on “Update and Save” after entering the information.
Step 5: Enter Bank Details
Provide branch details such as branch address, city, state, district, and PIN code.
Click “Add” to save the bank information.
Step 6: Add Director/Partner/Proprietor Details
Update details of the relevant person (Director, Proprietor, Partner, Karta, or Managing Trustee), including:
Click “Add” to save the information.
Step 7: Upload Supporting Documents
Upload required documents such as:
Address proof (Sale Deed, Rent Agreement, Lease Deed, Electricity Bill, Telephone Bill, MOU, Partnership Deed, etc.)
Cancelled cheque or bank certificate
For proprietorships, Passport, Voter ID, or Aadhaar may be used as address proof.
If the firm’s name is not mentioned in the address proof, a No Objection Certificate (NOC) must be submitted.
Documents must be uploaded in PDF or GIF format, and each file should not exceed 5 MB.
Step 8: Fee Payment
Proceed with payment of the prescribed application fee and complete verification.
Step 9: Review and Final Submission
Carefully review all the information entered in the application.
If everything is accurate, click “Print Application” for records.
Finally, submit the application either using a Digital Signature Certificate (DSC) or through electronic verification without DSC.
Once approved, the IEC is issued electronically by the DGFT, enabling the applicant to begin import-export operations.
