IEC
What IEC means, where you will meet it and what it means for your business.
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.
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 ₹999
- Private Limited CompanyFounders who plan to raise money or hirefrom ₹3,999