The Importer Exporter Code, or IEC, is the registration that lets a business import goods into India or export goods from it. Without one, a shipment can be stopped before it starts, so it is the first item on any importer's list. The rules sit in the Foreign Trade Policy and the Handbook of Procedures, and they are short and specific. This guide explains what an IEC is, who needs one and who is exempt, how to apply, how long it lasts, what the yearly update involves and the mistakes that cause trouble.
For where the IEC fits in the clearance process, see customs clearance in India step by step. For the other papers an import needs, see what documents are required to import goods into India.
What an IEC Is
India's Foreign Trade Policy 2023 describes the IEC as a 10-character alphanumeric number allotted to an entity, such as a firm, company or LLP, and says it is mandatory for any export or import activity. Since GST was introduced, the IEC is the same as the entity's Permanent Account Number (PAN), and it is issued separately by DGFT on an online application. The Handbook of Procedures adds that only one IEC is issued against a single PAN, so one entity cannot hold two.
Who Needs an IEC
The policy says no export or import of goods may be made by any person without an IEC unless specifically exempted. For the export of services or technology, an IEC is needed on the date the services are rendered if the exporter wants to claim benefits under the policy. In plain terms, a manufacturer importing machinery or materials, a trading business importing stock and any other entity importing goods for its business needs one before the goods are imported.
Who Is Exempt
The Handbook of Procedures lists the categories that are exempt from obtaining an IEC:
- Importers and exporters covered by the listed clauses of the Foreign Trade (Exemption from application of Rules in certain cases) Order, 1993.
- Ministries and departments of the Central or a State government.
- Persons importing or exporting goods for personal use that is not connected with trade, manufacture or agriculture.
- Persons importing or exporting goods from or to Nepal, Bhutan, Myanmar through the Indo-Myanmar border areas and China through Gunji, Namgaya Shipkila and Nathula, provided the CIF value of a single consignment stays within the stated limits.
The limits in the last item are 25,000 rupees for Nepal, Bhutan and Myanmar, and for China 1,00,000 rupees through Gunji and Namgaya Shipkila and 2,00,000 rupees through Nathula. Because the China exemption applies only to consignments through the three named border passes and within those limits, it does not cover cargo shipped by sea or air. The Handbook also assigns permanent IEC numbers to certain non-commercial categories, such as government departments and persons claiming baggage-rule benefits. If you think you are exempt, check the current text on the DGFT site before you rely on it.
How to Apply
The Handbook of Procedures sets out the process in paragraph 2.08:
- File the application online, in the ANF-2A format, through the DGFT website at dgft.gov.in, with the applicable fee and the required documents.
- Upload scanned copies of a cancelled cheque bearing the entity's pre-printed name or a bank certificate in the prescribed format, and an address proof of the applicant entity, unless the system exempts you from them.
- Wait for the IEC to be generated automatically. The applicant is told by e-mail and SMS.
- Download the electronic IEC from your dashboard.
The Handbook adds that the details you submit are validated through online integration with records kept by the relevant ministries, departments, organisations and banks wherever that is feasible, and that DGFT may carry out post-verification. The fee and the form can change, so always check the DGFT IEC page for the current process.
Verifying an IEC
The Handbook of Procedures says an electronic copy of the IEC can be downloaded from your DGFT dashboard, and that the details of any IEC can be verified on the DGFT website under Services, then View IEC Related Details. Use that route to check your own IEC before each shipment, and to check a counterpart's IEC when you deal with another Indian importer or exporter.
A Made-Up Example
A partnership firm books its first import (all details are made up). The broker asks for the IEC, and the partners discover that the firm has a PAN but has never applied. They apply online with a cancelled cheque and an address proof and download the electronic IEC. The cargo waits until it exists, because no import may be made without one. The lesson is to apply when the first purchase order is placed, not when the cargo is booked.
How Long an IEC Lasts
Under the Handbook, an IEC has permanent validity unless it is suspended or cancelled by the competent authority, and it covers all the branches, divisions, units and factories of the applicant. It also remains valid whether the firm is a domestic tariff area unit or a unit in an SEZ or EOU. Permanent validity does not mean you can ignore it, because of the yearly update.
The Yearly Update
The Foreign Trade Policy requires an IEC holder to update the details electronically every year during April to June. Where nothing has changed, the holder still has to confirm that online. Three further rules follow:
- An IEC that is not updated within the period is de-activated, and it can be activated again when it is successfully updated.
- That outcome is without prejudice to any other action under the policy.
- An IEC can also be flagged for scrutiny, and the holder must make sure that any risks flagged by the system are addressed in time, or the IEC will be de-activated.
A reminder in your calendar each April costs nothing, and an inactive IEC can cost you a shipment.
One PAN, One IEC, and Surrender
Since only one IEC is issued against a PAN, a business that restructures should check which PAN it will use before it applies. An IEC holder who does not want to use the IEC can surrender it online. The Handbook says the issuing authority examines the request, and that surrender is allowed only if all authorisations and obligations under the IEC have been closed, or if the firm has been amalgamated, acquired or merged with another entity. After approval, the updated IEC is sent to the customs authorities.
IEC, PAN, GSTIN and Portal Registration: What Is What
| Item | What it is | Why an importer needs it |
|---|---|---|
| IEC | A 10-character code issued by DGFT, the same as the PAN | Mandatory for import unless exempt |
| PAN | The permanent account number on which the IEC is based | The IEC cannot be separated from it |
| GSTIN | The identifier under GST registration | CBIC's guidance note advises quoting it in the bill of entry in addition to the IEC |
| ICEGATE registration | Access to the customs portal | ICEGATE lists registration, electronic filing and e-payment among its services |
Common IEC Mistakes
- Missing the April to June update and finding the IEC de-activated when the cargo arrives.
- Applying for a second IEC when one already exists against the same PAN.
- Letting the name or address differ between the IEC, the GST registration, the bank records and the invoices.
- Assuming an exemption applies when the goods are for a business purpose.
- Leaving the application until the cargo is already on the water.
An IEC Checklist Before Your First Shipment
- Confirm the entity has a PAN and decide which entity will import.
- Prepare the cancelled cheque or bank certificate and the address proof.
- Apply online and download the electronic IEC.
- Check the IEC details against your GST registration and your bank records.
- Share the IEC and GST details with your broker and sign the broker's authorisation.
- Set a yearly reminder for April.
Our guide to first-time importer FAQs covers the other early questions.
Get Import-Ready With RR Brothers and Logistics
RR Brothers and Logistics checks that an importer's registrations are in order before a shipment is booked, and supports customs clearance at the destination. Send us your plans and we will tell you what to have in place before the cargo ships.
Frequently Asked Questions
The Importer Exporter Code is a 10-character alphanumeric number allotted to an entity and mandatory for import or export activity. Under the Foreign Trade Policy it is the same as the entity's PAN.
The policy says no import may be made without an IEC unless specifically exempted. The Handbook of Procedures lists the exemptions, including personal use not connected with trade, manufacture or agriculture.
It has permanent validity unless suspended or cancelled, but the holder must update it online every year between April and June, or it is de-activated until it is updated.
No. The Handbook of Procedures says only one IEC is issued against a single PAN.
File the ANF-2A application online at dgft.gov.in with the applicable fee, a cancelled cheque or bank certificate and an address proof. The IEC is generated automatically and sent by e-mail and SMS.
The Foreign Trade Policy says it can be activated again on successful updation. Update it online, and do not rely on it for a shipment until the status shows active.
Sources
- DGFT: Foreign Trade Policy 2023, Chapter 2 (para 2.05)
- DGFT: Handbook of Procedures, Chapter 2, July 2026 edition (paras 2.07 to 2.13)
- DGFT: IEC profile management
- CBIC: Guidance note for importers and exporters on GST
- ICEGATE: Indian Customs National Trade Portal
This article is general information, not legal, tax or customs advice. Rules, rates and procedures change; confirm current requirements with the relevant authority or a licensed customs professional before you ship. Regulatory references were checked against the official sources listed above on 26 October 2026.
Image credits: header photo by jevgeni mironov on Unsplash; photo by Kyle Glenn on Unsplash. Used under the Unsplash License.
Request a Quote
