Import Export Code Registration
The Import Export Code (IEC) is a mandatory license required for businesses or individuals who want to start import or export activities in India. Issued by the Directorate General of Foreign Trade (DGFT), the Importer Exporter Code (IEC) is a unique 10-digit number serving as a business identification for international trade. It is mandatory for any individual or entity to obtain this code to legally import or export goods and services from India.
It is a one-time registration and does not require any renewal, making it a crucial step for anyone looking to expand their business globally.
Documents Required for IEC Registration
PAN Card of the Business or Individual: A copy of the Permanent Account Number (PAN) card of the business entity or proprietor.
Address Proof of the Business:
- Utility bill (Electricity, Gass Etc)
- NOC/Rent agreement
Cancelled Cheque or Bank Statement: A cancelled cheque or bank statement bearing the entity’s banking details.
Passport-size Photograph: Recent photograph of the applicant (proprietor/partner/director).
Identity and Address Proof of the Applicant (for individuals or authorized signatory): Aadhaar Card / Voter ID / Passport / Driving License
In Case of a Company or LLP:
- Certificate of Incorporation
- Company’s PAN card
- Memorandum and Articles of Association (MOA & AOA) or LLP Agreement
- Board Resolution/Letter of Authorization for the authorized signatory
Importance of IEC (Import Export Code) Registration
IEC Registration is essential for any individual or business looking to start import or export activities in India. It acts as a license that enables the seamless flow of goods across international borders. Issued by the Directorate General of Foreign Trade (DGFT), IEC is a mandatory requirement for importing or exporting goods and services from India.
Mandatory for International Trade
IEC is a must-have for any entity wishing to import goods into or export goods out of India. Customs authorities will not allow the clearance of goods without a valid IEC.
Enables Global Market Reach
It enables businesses to tap into international markets, build global clientele, and scale operations beyond domestic boundaries.
No Need for Annual Compliance
Unlike many other registrations, IEC does not require monthly or annual filings, making it easy to maintain. It's issued for a lifetime unless cancelled.
Avails Government Benefits
IEC holders can avail of multiple benefits under schemes like MEIS, SEIS, from the DGFT, Customs, and Export Promotion Councils.
Eases Customs and Banking Procedures
IEC is needed for customs clearance and is used by banks for processing international payments, foreign currency remittances, and opening trade accounts.
Boosts Credibility
Having an IEC lends legitimacy and professional recognition to your business in international trade.
Supports E-Commerce Exports
IEC is also necessary for businesses selling products internationally via online platforms like Amazon, eBay, or Shopify.
Promotes Brand Expansion
With global exposure, businesses can diversify their brand, explore new product segments, and increase profitability.
No Renewal Needed
The IEC, once granted, is valid for the lifetime of the business and does not need periodic renewal or revalidation.
Applicable to Individuals & Entities
Both individuals and legal entities (like companies, LLPs, partnerships) can apply for IEC, making it accessible for all types of exporters and importers.
Online Application Process
The IEC registration process is simple, digital, and quick usually issued within 1-2 working days.
Essential for Importing Machinery or Raw Material
Manufacturing businesses that import raw materials or machinery require IEC to avail of customs duty exemptions and tax benefits.
Exemption from IEC (Import Export Code) Registration
While IEC is generally mandatory for carrying out import and export activities in India, certain individuals and organizations are exempted from obtaining IEC under specific circumstances.
Here are the key cases of exemption from IEC registration:
Import/Export by Government Departments: Ministries and departments of the Central or State Government are exempt from obtaining an IEC for import or export activities.
Import/Export by Notified Charitable Institutions: Goods imported or exported by certain notified charitable organizations or relief agencies (like Red Cross, CARE India, etc.) are exempt from IEC registration.
Import/Export for Personal Use: IEC is not required if goods are imported or exported solely for personal use and not for commercial, business, or manufacturing purposes.
Import/Export by Diplomatic Bodies: Imports or exports done by Embassies and UN organizations are exempt from IEC registration.
Transactions through Postal Channels: Imports or exports carried out through postal services where the value of goods is below a specified limit and not for trade purposes may be exempt.
Export of Services (in Certain Cases): Service exporters who are not claiming benefits under any DGFT scheme may not require an IEC. However, banks may still require IEC for processing remittances.
Transactions via e-commerce portals (in specific cases): Small-scale exporters or individuals exporting via international courier/e-commerce platforms (with limited transactions and value) might be exempt, subject to DGFT guidelines.
AD Category-I Banks (For Remittance Purpose): Authorized Dealer (AD) Category-I banks, which handle foreign exchange transactions, may not require IEC for inward remittances under certain conditions. However, for commercial transactions, IEC is generally required.
SEZ (Special Economic Zone) Units: Units operating within a Special Economic Zone (SEZ) do not require a separate IEC, as the IEC issued to the SEZ Developer is considered valid for all units within the zone.
Step-by-Step Process for IEC Registration
Here’s a detailed guide on the Section 8 Company registration process step by step:
Visit the DGFT Website
- Go to the official DGFT portal: https://www.dgft.gov.in
- Click on ‘Apply for IEC’ under the Services section.
Register on the DGFT Portal
- Create a user profile using your PAN, email ID, and mobile number.
- Verify your identity using OTP-based authentication.
Fill in the IEC Application (ANF-2A Form)
- Log in to your DGFT account and fill out the IEC application form.
- Enter details such as:
- Name of applicant/business
- PAN and Aadhaar
- Address and contact details
- Bank account details with IFSC code
- Nature of the entity (Proprietorship, Partnership, Company, etc.)
Upload Required Documents
Upload scanned copies of:
- PAN Card of the applicant
- Address proof (like utility bill, lease deed, etc.)
- Cancelled cheque or bank certificate
- Aadhaar card (for proprietors)
Pay the Application Fee
Pay the official IEC registration fee via net banking, credit/debit card, or UPI.
Preview and Submit the Application
Submit the application with digital signature (DSC).
Issuance of IEC Certificate
- Once verified, the DGFT will issue the IEC digitally.
- You can download the IEC certificate from the DGFT portal.
Note:
- IEC is a one-time registration and is valid for a lifetime unless voluntarily surrendered or cancelled by DGFT.
- No renewal or return filing is required for IEC.
Situations Where IEC is Mandatory
Importing Goods into India
Any business or individual importing goods from a foreign country must have a valid IEC for customs clearance and documentation.
Exporting Goods from India
IEC is essential for anyone exporting goods from India to another country, regardless of the export volume or value.
Sending or Receiving International Payments
IEC is required when receiving foreign currency payments for exports or making foreign remittances for imports through banks.
Customs Clearance at Ports
During customs verification and clearance, the IEC number is needed for both import and export shipments.
Participation in International Trade Fairs or Exhibitions
When sending samples or goods for exhibitions abroad, an IEC is required for temporary export or re-import.
Export of Services
Service providers who receive foreign payments (like software developers, consultants, etc.) and claim benefits under DGFT schemes must have IEC.
E-commerce Exports
Businesses exporting products via Amazon, Flipkart, eBay, Shopify, or other international e-commerce platforms must obtain IEC.
Claiming Export Incentives or Benefits
To avail of benefits like RoDTEP, SEIS, MEIS, or any export promotion schemes, IEC is a must.
Imports Under Special Schemes
When importing under Advance Authorization, EPCG, or other DGFT schemes, IEC is required for registration and benefit eligibility.
Export/Import by SEZ Units
Though SEZ units don't need a separate IEC, any transaction outside the SEZ involving import/export generally requires IEC linked to the SEZ developer.
High-Value International Courier or Cargo
If the value of goods exceeds the threshold for duty-free import/export via courier, an IEC is required for processing.
IEC is mandatory for almost all international trade activities, whether physical goods or services, and even for many digital or courier-based transactions.
FAQs on Import Export Code (IEC) Registration
What is IEC and who issues it?
IEC (Import Export Code) is a unique 10-digit identification number issued by the Directorate General of Foreign Trade (DGFT) to individuals or businesses for carrying out import and export operations in India.
Is IEC registration mandatory for all import/export activities?
Yes, IEC is necessary for most import and export activities. However, some exceptions apply, such as imports/exports by government departments, charitable organizations, or for personal use.
Can individuals apply for IEC?
Yes, both individuals and entities (like partnerships, companies, LLPs, etc.) can apply for IEC. PAN is required for application.
Is there any renewal required for IEC?
No. IEC is a one-time registration and remains valid for a lifetime, unless voluntarily surrendered or cancelled by DGFT.
How long does it take to get IEC?
IEC is usually issued within 1–2 working days after successful submission of application and payment.
Can one IEC be used for multiple branches or units?
Yes, a single IEC can be used for all divisions or branches of a business across India, provided they operate under the same PAN.
What if I need to update my IEC details later?
IEC details can be updated or modified online through the DGFT portal. No additional fee is charged for updates unless reissuance is needed.
Is a digital signature mandatory for applying IEC?
Yes, a Digital Signature Certificate (DSC) is required for companies and LLPs. Proprietors may use Aadhaar-based e-sign as an alternative.
What are the fees for IEC registration?
The official government fee for applying for IEC is ₹500, payable online via net banking, UPI, or card.
Is IEC required for service exporters too?
Yes, service exporters generally need an IEC if they wish to claim benefits under DGFT schemes like SEIS or when they receive foreign remittances.
Can IEC be surrendered or cancelled?
Yes, the IEC holder can voluntarily surrender the code through the DGFT portal. DGFT may also cancel the IEC if it is misused.
Is GST mandatory for IEC registration?
No, GST is not mandatory for obtaining IEC. However, if you are registered under GST, the GSTIN may be linked to your IEC.
Do SEZ units need a separate IEC?
No, SEZ units can use the IEC of the SEZ developer, but any transaction outside the SEZ may still require linking or separate identification.
Can one business have multiple IECs?
No, one PAN = one IEC. Multiple IECs cannot be issued against the same PAN.
What are the consequences of importing or exporting without an IEC?
Engaging in import or export activities without a valid IEC is considered a violation of DGFT regulations and may lead to penalties, seizure of goods, or other legal actions.
Can IEC be used for both goods and services exports?
Yes, the IEC is applicable for the import and export of both physical goods and services. It is especially required if the service exporter is receiving payments in foreign currency or availing DGFT benefits.
What happens if incorrect details are submitted during IEC registration?
If incorrect or mismatched details are submitted, the application may get rejected, or the IEC may be issued with errors. However, corrections can be made by submitting a modification request through the DGFT portal.
Is it possible to apply for IEC without a business bank account?
No, you need to provide a business bank account in the name of the applicant (individual or entity). A cancelled cheque or bank certificate is mandatory during the application process.
Is IEC transferable to another person or business?
No, IEC is non-transferable. It is issued against a particular PAN and is unique to that individual or entity.
What should I do if I forget or lose my IEC certificate?
You can simply log in to the DGFT portal and download a copy of your IEC certificate anytime. There is no requirement to reapply for a new certificate.