Quick answer: The Import Export Code (IEC) is a 10-digit code from DGFT that you need to import or export goods from India. The government fee is ₹500, the code is valid for life, and the application is made online using your PAN. You must confirm your details every year to keep it active. If you only export services, an IEC is generally not mandatory, but banks, payment platforms and marketplaces often ask for one.
A Vadodara manufacturer lands her first overseas order. The buyer wants shipment in three weeks. The freight forwarder asks for her IEC. She does not have one. The order is real, the goods are ready, and the shipment is stuck for a document that takes a few days to get.
An IEC is the first piece of paper every goods exporter needs. This guide explains who needs one, what it costs, how to apply and what to do after.
What Is an IEC?
An IEC is issued by the Directorate General of Foreign Trade (DGFT). It is linked to your PAN, so there is one IEC per PAN. Customs, banks and shipping lines use it to identify you as an importer or exporter.
Who Needs an IEC?
- Goods exporters. Needed. You cannot clear exports without it.
- Goods importers. Needed for commercial imports.
- Service exporters. Generally not mandatory under the trade policy unless you claim benefits under it. In practice, many banks, payment gateways and marketplaces ask for an IEC, so most service exporters get one anyway.
Not sure which applies to you? Ask us before you apply. The answer depends on what you sell and how you are paid.
Fee and Validity
- Government fee: ₹500, paid online.
- Validity: Lifetime. There is no renewal.
- Annual update: You need to confirm or update your IEC details every year, in the window set by DGFT. If you skip it, the code can be deactivated.
Some agents charge much more than the government fee because of their service charges. Ask for a clear breakdown of what is government fee and what is professional fee.
Documents You Need
- PAN of the business, proprietor or company.
- Address proof of the business premises.
- Identity proof of the proprietor or authorised signatory, such as Aadhaar.
- Bank proof, such as a cancelled cheque or bank statement. Name and account details must match.
- Active mobile number and email address.
- Passport-size photograph, where asked.
How to Apply
- Log in to the DGFT portal and select the IEC application.
- Enter your PAN and business details. They must match your PAN record.
- Upload the documents and add your bank details.
- Pay the ₹500 fee online.
- Submit and verify. After checks, the IEC certificate is issued, often within a few working days.
What to Do After You Get Your IEC
- Register with your bank for exports. Banks link your IEC to export proceeds. Goods exporters also register their bank branch code (AD code) at the port where they ship.
- Get your GSTIN in order. See GST registration in Vadodara.
- File your LUT every year. It lets you export without paying IGST. Read our guide to the GST LUT for exporters.
- Keep your returns clean. Export invoices must match in GSTR-1 and GSTR-3B. See GST return filing in Vadodara.
Five Mistakes Exporters Make With IEC
- Applying under the wrong name. The IEC should match the PAN of the entity that will actually export.
- Bank details that do not match. The account name must match the IEC holder.
- Forgetting the yearly update. A deactivated IEC can hold up a shipment.
- Using the wrong entity for invoices. If the proprietor has the IEC but the invoice is in a company name, there will be a mismatch.
- Waiting until the order arrives. Apply before you need it.
Frequently Asked Questions
What is the IEC fee?
The government fee is ₹500.
How long is an IEC valid?
For life. You only need to confirm your details each year.
Do I need an IEC to export services?
Generally not mandatory, but many banks and payment platforms ask for it. Check with your CA and your bank.
Can a proprietorship get an IEC?
Yes. A proprietorship, partnership, LLP or company can apply using its PAN.
How long does it take?
Often a few working days once the application and documents are correct.
Do I need an IEC and a GSTIN?
They are separate. An IEC lets you trade across borders. A GSTIN registers you under GST. Exporters usually need both.
Need an IEC or Help Setting Up Your Export Compliance?
S.K. Thakkar & Associates helps Vadodara businesses get their IEC, set up GST for exports, file the LUT and keep the paperwork clean. Tell us what you export and where your buyers are, and we will tell you what is needed.
This article is general information, not professional advice. Fees, forms, portal steps and trade-policy rules can change, so confirm current rules on the DGFT portal or with your CA before acting.