In this guide, we will explain everything about the Import Export Code in simple language. Whether you are a new business owner, student, or a trader looking to expand, this guide will help you understand the importance of IEC Registration and how to apply for it.
What is an Import Export Code?
The Import Export Code (IEC) is a 10-digit number given by the DGFT (Directorate General of Foreign Trade) under the Ministry of Commerce and Industry, Government of India. It is required by individuals and businesses who want to do international trade in India.
Without an IEC, you cannot legally import or export goods and services from India. It is a one-time registration that does not require renewal and has lifetime validity, unless updated or surrendered.
Why is IEC Important?
IEC is important because it allows you to:
- Import goods into India legally.
- Export goods from India to other countries.
- Claim export incentives from the government.
- Receive payments in foreign currencies.
- Open international business opportunities.
- Clear goods from customs authorities.
- Grow your business in the global market.
Who Needs an IEC?
The following individuals or businesses need an IEC:
- Sole proprietors
- Partnership firms
- Private limited companies
- LLPs (Limited Liability Partnerships)
- Trusts and societies
- Government departments doing trade
- Any individual or organization involved in import/export
Cases Where IEC is Not Required
IEC is not required when:
- Goods are being imported or exported for personal use and not for business.
- Services or technologies are being exported to foreign clients through online platforms, and the transactions follow RBI guidelines.
- The import/export is done by government ministries or departments.
Documents Required for IEC Application
Before applying, make sure you have the following documents ready:
For Individuals:
- PAN card (mandatory)
- Aadhaar card or copyright
- copyright-size photo
- Bank account details and a cancelled cheque
- Mobile number and email ID
For Businesses:
- Company PAN card
- Certificate of Incorporation
- Address proof (electricity bill, lease agreement, or rent receipt)
- Bank account in the company’s name with a cancelled cheque
- Director’s or partner’s identity proof
- Digital Signature Certificate (optional but useful)
How to Apply for IEC Online
Applying for IEC is very simple and can be done online from home. Follow these steps:
- Visit the IEC Portal – Open the official IEC registration website on your browser.
- Fill in the Application Form – Enter your business name, type, PAN number, and other required details carefully.
- Submit the Application – Review all the details to ensure accuracy before submitting the form.
- Pay the Registration Fee – Make the payment online using net banking, credit/debit card, or UPI.
- OTP Verification – Enter the OTP sent to your registered mobile number or email for authentication.
- Processing & Approval – The concerned authority will verify your details and process the application.
- Receive Your IEC Code – Once approved, the IEC code will be sent to your registered email within 1-2 business days.
How Long Does it Take to Get IEC?
Once the application is submitted, the DGFT usually processes it within 1 to 3 working days, if all details and documents are correct. You will receive your IEC by email in a soft copy (PDF format). There is no hard copy issued now.
Format of IEC
IEC is a 10-digit code. For example: 1234567890
It is linked to your PAN card. That means if you have more than one business, each business must have a separate PAN and IEC.
What Happens After Getting IEC?
Once you receive your IEC:
- You can start importing or exporting goods.
- Share it with customs authorities for clearance of goods.
- Use it in shipping and logistics documentation.
- Mention it on invoices for international clients.
- Open a foreign currency account if required.
Common Mistakes to Avoid
While applying for IEC, be careful about the following:
- Spelling errors in name or address
- Mismatch of PAN and Aadhaar
- Wrong bank details
- Not uploading clear documents
- Incorrect business type
IEC Modification and Update
If there is any change in your business details like:
- Address
- Bank account
- Mobile number
- Director or partner details
Benefits of Having an IEC
- Easy Entry to Global Market – You can start international trade legally.
- Government Schemes and Benefits – Avail tax exemptions and financial help from the government for exports.
- No Return Filing Required – IEC does not require monthly or yearly returns.
- Lifetime Validity – No need to renew unless changes are made.
- No Compliance Burden – Simple to get and maintain.
- Builds Trust – Customers and partners trust businesses with proper registration.
Export Promotion Schemes Linked to IEC
After getting IEC, you can apply for:
- RoDTEP Scheme – Refund of duties on export products.
- Advance Authorization Scheme – Import goods without paying customs duty.
- Duty Drawback Scheme – Get back taxes on goods exported.
- MEIS/SEIS Schemes – Earlier schemes that gave rewards for exports (now replaced).
Digital Signature for IEC Filing
A Digital Signature Certificate (DSC) is not mandatory for IEC, but using it makes the process faster and more secure. For companies and LLPs, DSC is often required for verification during updates or modifications.
What If I Don’t Have an IEC?
If you do import/export without an IEC:
- Your goods can be held at customs.
- You cannot claim export benefits.
- Payments from foreign clients may not be processed.
- It may lead to penalties and legal issues.
Professional Help for IEC
If you are not confident doing the IEC process yourself, you can:
- Hire a professional service or CA.
- Contact online service providers.
- Use government facilitation centers.
Suggested read: Secrets to Profitable Import-Export Trading
Conclusion
Getting an Import Export Code is the first and most important step in starting your journey in the international trade business. It opens the door to global markets and helps your business grow without restrictions. The process is simple, affordable, and can be done completely online.
Whether you are a student selling digital services or a business exporting physical goods, having an IEC is your license to go global. So, do not wait. Gather your documents, visit the DGFT portal, and apply for your IEC today.
If you need help with the application, updates, or using IEC, feel free to ask. I’m here to guide you through each step.