You apply for an Import Export Code online on the DGFT portal, against your PAN, with a small government fee, and it is usually issued within a couple of working days. Without an IEC, goods cannot clear customs in either direction. This guide covers who needs one, who does not, and how to keep it active.
What an IEC is
The Import Export Code is a 10-digit code issued by the Directorate General of Foreign Trade. It is the basic identifier without which physical goods cannot be imported or exported through Indian customs. One IEC covers all your import and export activity.
Who needs one
Anyone importing or exporting goods as a business needs an IEC. It can be issued against an individual PAN, so a sole proprietor or freelancer dealing in goods can get one without forming a company. Companies and LLPs apply against their own PAN.
Do service and software exporters need it?
For pure service or software exports, you generally do not need an IEC unless you want to claim benefits under the Foreign Trade Policy. Many service exporters still take one because it is cheap and simplifies dealings with banks and buyers. If you export physical goods, it is mandatory.
How to apply
Apply online on the DGFT portal with your PAN, bank details and business information. Once your documents are in order, the code is usually issued within a couple of working days. Most delays come from mismatched documents, so apply well before your first shipment so a small fix does not hold up cargo.
Keep it active with the annual update
An IEC must be electronically updated every year, even if nothing has changed, to stay active. Forgetting the annual update can deactivate your IEC and stall shipments. Set a reminder so it does not lapse.
What else exporters need
Beyond the IEC, exporters register their bank AD code at each port through ICEGATE, file a GST LUT to export without paying IGST upfront, and take an RCMC if claiming Foreign Trade Policy benefits. Food and agri exporters register with APEDA. The mapper lists the full export stack for your situation.
Common mistakes to avoid
- Applying at the last minute and delaying a shipment over a document mismatch.
- Forgetting the mandatory annual electronic update, which deactivates the IEC.
- Assuming a service exporter must have one; usually only needed for scheme benefits.
- Getting the IEC but forgetting the AD code registration at the port.
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