Importer-Exporter Code (IEC) 

Introduction to IEC

• The Importer-Exporter Code (IEC) is a unique 10-digit registration number issued by the Directorate General of Foreign Trade (DGFT).

• It is a legal prerequisite for any business or individual involved in international trade of goods and services from India.

• IEC registration opens the doors for legal import and export operations, financial dealings in foreign currency, and access to various government schemes.

• No person or company can engage in import/export without having a valid IEC, unless exempted under specific categories.

Key Objectives of IEC

• To identify exporters and importers at the national level.

• To bring transparency and control in foreign trade practices.

• To provide regulatory traceability of transactions done with foreign entities.

• To act as a basic compliance requirement before customs clearance, bank transactions, or availing of export incentives.

Applicability of IEC

• Mandatory for all exporters and importers, whether individual, proprietorship, or incorporated entity.

• Applies to physical goods export/import as well as digital or service exports where payment is received in foreign currency.

• Required to register with Customs, banks, export councils, and other trade bodies.

• Applicable even for freelancers or consultants earning in foreign currency through platforms or direct overseas clients.

Where IEC is Not Required

• When goods or services are traded strictly for personal use, not connected to commercial activity.

• Imports and exports done by government departments, diplomatic missions, or agencies notified by the DGFT.

• Transactions where no foreign exchange is involved and no customs clearance is necessary.

Advantages of Holding an IEC

• Provides legitimate access to the international market.

• Facilitates smooth customs processing for imports and exports.

• Enables seamless foreign remittances and payments through banking channels.

• Makes the business eligible for government benefits under export incentive schemes.

• Adds authenticity and trust to the business, especially when dealing with foreign clients and suppliers.

• No renewal required – the code is issued once and remains valid permanently.

List of Documents Required for IEC Application

• PAN Card of the applicant (individual/entity).

• Identity proof – Aadhar, passport, or voter ID (for individuals or proprietors).

• Proof of business registration – Certificate of Incorporation, MSME/Udyam certificate, partnership deed, etc.

• Address proof – Latest electricity bill, rent agreement, or landline bill.

• Cancelled cheque or a bank certificate with pre-printed account details.

• Active mobile number and email ID linked to Aadhaar for OTP-based authentication.

IEC Registration Procedure – Step-by-Step

1. Visit the official DGFT portal and sign up with the PAN of the business.

2. Generate OTP and authenticate your email ID and mobile number.

3. Fill out the IEC application form with details of your business and bank account.

4. Upload required documents in the specified format and file size.

5. Pay the government fee of ₹500 online using net banking or debit/credit card.

6. Submit the application and note down the Application Reference Number (ARN).

7. After internal scrutiny, the IEC certificate is generated digitally and emailed within 1–3 working days.

Important Features of IEC

• Issued in the name of the applicant’s PAN – the same code is applicable for all future international trade under the same entity.

• IEC can be used for multiple products and multiple countries without limitation.

• No export or import activity can proceed through Indian ports without IEC linked to the Customs.

• It is required while registering with ICEGATE, APEDA, FSSAI, SEZ authorities, EPCs, etc.

Annual IEC Update Requirement

• From July 2021, all IEC holders must electronically update or confirm their details on the DGFT portal annually between April to June.

• Even if no changes have occurred, confirmation is mandatory.

• Non-compliance may lead to automatic deactivation of the IEC by DGFT.

When to Modify or Surrender IEC?

• When there is a change in company name, address, directors, or ownership structure.

• If the IEC holder wants to close operations or transfer the code to another entity, a surrender request must be filed online.

• IEC can be reactivated post-deactivation by following a simple revalidation process on the DGFT portal.

Common Challenges Faced

• Mismatch between PAN and registration details.

• Uploading blurred or improperly scanned documents.

• Payment gateway issues while submitting the fee.

• Forgetting to file annual updates, leading to deactivation and trade delays.

• Selecting incorrect entity type during registration (e.g., Individual vs. Company).

Why Choose YKG Global for IEC Services?

• Expert-led guidance and error-free filing on the DGFT platform.

• Quick documentation support and pan-India service.

• Annual update and modification support.

• Seamless integration with other export registrations like FSSAI, APEDA, AD Code, ICEGATE, and RCMC.

• Personalized consultation for first-time exporters or service providers.