IEC
What IEC means, how it works, a worked example, the mistakes we see and the questions founders ask.
DefinitionAn Importer Exporter Code (IEC) is the 10-character registration from the DGFT that any business needs to import or export goods, or to receive foreign payment for exported services.
The IEC is issued by the Directorate General of Foreign Trade through its online portal, usually within a day or two, for a government fee of ₹500. Since 2017 the IEC is the same as the applicant's PAN, so one business holds one IEC for life. Banks ask for it before processing an import remittance or crediting export proceeds, customs needs it on every shipping bill, and service exporters use it to claim benefits and file the annual Foreign Trade Policy declarations. You meet it when your first foreign order arrives. What it means for you: the IEC must be updated on the DGFT portal between April and June every year, even with no changes, or it is deactivated. There is no fee for the update, but a deactivated IEC stalls shipments and payments.
How IEC works
The Importer Exporter Code is a ten-character number, now the same as the PAN, allotted by the Directorate General of Foreign Trade. It is applied for online on the DGFT portal with the PAN, the bank account details and a cancelled cheque, a fee of ₹500 and a digital signature or Aadhaar verification, and is usually issued within a day or two. No shipment can clear customs without it, and banks need it to process inward and outward foreign currency remittances for goods.
Since 2021 the holder must confirm or update the IEC's details on the portal every year between April and June, even if nothing has changed; an IEC not updated by 30 June is deactivated until the update is done. Services exporters need an IEC only when they claim benefits under the foreign trade policy or the bank asks for it; a software company receiving fees in dollars can do so on its PAN alone.
The IEC links to the customs system (ICEGATE), the GST registration and the authorised dealer bank, which together report each export and the realisation of its proceeds, the chain behind GST refunds and the RBI's export data.
A Moradabad brassware maker lands its first order from a German buyer. It applies for an IEC on the DGFT portal on Monday with its PAN, a cancelled cheque and Aadhaar OTP, and receives the certificate on Tuesday. The freight forwarder files the shipping bill against the IEC and GSTIN; after shipment the maker claims the IGST refund on the export through its GST returns, and the bank matches the inward remittance to the shipping bill.
Mistakes we see with IEC
- Skipping the annual April to June update and finding the IEC deactivated when a shipment is at the port.
- Applying for an IEC in the proprietor's name when the business has since become a company; the IEC follows the PAN, so the company needs its own.
- Assuming an IEC is enough to export restricted goods, which also need a licence or authorisation from DGFT.
Last updated 19 October 2026. Checked against the MCA, GST, Income-tax and Trade Marks rules in force for October 2026.
Where you will meet this term
- GST RegistrationBusinesses crossing the turnover limit, selling online or across states, or wanting input credit.from ₹1,999
- ProprietorshipFor a freelancer, consultant or single-owner shop that wants to start trading this week with the lightest compliance.from ₹1,999
- Private Limited CompanyFounders who plan to raise money or hirefrom ₹4,999
Questions founders ask about IEC
Do I need an IEC to export services?
Not for customs, since services do not pass through a port, and most banks accept remittances for services on the PAN. You will need one to claim foreign trade policy benefits or if a bank or platform insists on it.
How much does an IEC cost and how long does it take?
₹500 on the DGFT portal, with the certificate usually issued within one to two working days. There is no renewal fee, only the free annual update between April and June.
What happens if the IEC is not updated annually?
It is deactivated after 30 June and cannot be used for customs clearance or bank transactions until the update is completed on the DGFT portal, which reactivates it.