Import Export Code (IEC): What It Is and Whether You Need One

An Import Export Code (IEC) is a 10-character code that the Directorate General of Foreign Trade (DGFT) issues to a business. It is the same as the business's PAN. You need one before you import or export goods for trade. You do not need one for personal purchases, or for exporting services unless you claim Foreign Trade Policy benefits.

What exactly is an Import Export Code (IEC)?

Think of it as your business's identity for cross-border trade in goods. Customs uses it on every shipping bill (the export declaration) and every bill of entry (the import declaration). Your bank uses it when foreign money comes in or goes out against goods.

The official name is Importer-Exporter Code. The Foreign Trade Policy 2023 describes it as a 10-character alpha-numeric number allotted to an entity, and says it shall be the same as the PAN. So if your PAN is ABCDE1234F, your IEC is ABCDE1234F. Having a PAN is not enough though. DGFT still has to issue the IEC to you separately, on an online application.

Why does the rule exist? The government wants one traceable identity behind every commercial consignment that crosses the border. Tying it to PAN means customs, DGFT, GST and your bank are all looking at the same business.

Who issues it?

DGFT, which works under the Ministry of Commerce and Industry. The application is made only on dgft.gov.in. No other website issues an IEC, whatever its name suggests.

Do you need one?

The policy puts it plainly: no person may export or import goods without an IEC unless specifically exempted. There is no turnover limit and no minimum shipment value in that rule. One commercial parcel is enough to bring you in.

Now the exemptions. The Handbook of Procedures lists who does not need an IEC:

• People importing or exporting goods for personal use, not connected with trade, manufacture or agriculture.
• Central and State Government ministries and departments.
• Small consignments to or from Nepal, Bhutan and Myanmar (through the Indo-Myanmar border areas) where a single consignment is not above Rs 25,000 in CIF value. CIF means cost, insurance and freight: the value of the goods plus insurance and shipping.
• Certain border trade with China through named ports, with ceilings of Rs 1,00,000 or Rs 2,00,000 per consignment depending on the port.

And services? If you export services or technology, such as software work, design or consulting, the policy asks for an IEC only for availing benefits under the Foreign Trade Policy. A freelancer who just raises invoices to foreign clients and receives payment is not required by the policy to hold one. Your bank or payment partner may still ask for it as part of its own onboarding, so check with them.

Your situation: do you need an IEC?

What about online sellers exporting through marketplaces?

This is the question most small sellers ask. The marketplace gives you the storefront and often the logistics. But the goods are yours, and the export declaration is made in your name. The marketplace's export programmes ask for your IEC at sign-up for this reason.

The good news: the IEC is the easy part. It is one online form and Rs 500. If you already file GST returns for your domestic marketplace sales, you already have the PAN, bank account and address proof it asks for.

A worked example

Meera sells handmade jewellery on Meesho from Jaipur. A buyer in Dubai finds her on Instagram and orders pieces worth Rs 4,200. It feels too small to count. It still counts, because it is an export of goods for trade.

What does it cost her to do it right? Rs 500 once to DGFT for the IEC. Nothing each year, as long as she confirms her details between April and June. Compare that with a parcel held at customs and a buyer waiting. For Rs 500, the first order and every later one moves under her own code.

How long is it valid, and what is the yearly update?

An IEC has permanent validity. There is no renewal and no renewal fee.

There is one yearly task. Every IEC holder has to update the details electronically during the April to June period each year. If nothing has changed, you still log in and confirm that. Updating in this window carries no fee.

If you do not, the policy says the IEC shall be deactivated. A deactivated code can be activated again once you complete the update, so the fix is in your hands. The official fee schedule, as amended in April 2025, lists Rs 200 for an annual update done after the window.

Separately, if your address, bank details or constitution changes during the year, you are expected to update the IEC online within 30 days of the change.

The mistake people usually make

They treat the IEC as a one-time certificate and forget it. Two or three years later an export order arrives, the shipping bill will not go through, and they find the code was deactivated after a missed April to June update.

The second common mistake is the opposite: paying for an IEC "just in case" when the business only sells in India or only exports services. If that is you, you can wait until goods actually need to cross the border.

What to do next: put a reminder in your calendar for the first week of April. The update takes a few minutes when you do it on time.

Should you apply yourself or pay someone?

If your PAN, bank account and address proof all carry the same business name, you can apply yourself on dgft.gov.in. Our step by step guide to applying online walks through it, and the document checklist shows what to scan. Paying for help makes sense when names do not match across documents, or when you would rather not spend an evening on a government portal. The fees article shows what is the government's charge and what is a service charge.

Frequently asked questions

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