The Import Export Code (IEC): A Plain-English Guide

If you plan to import or export from India, there's a ten-digit number you need before you ship anything: the Import Export Code. It's one of those pieces of compliance that sounds intimidating and is actually fairly simple — but simple isn't the same as forgiving, and a rejected or lapsed IEC can cost you weeks at exactly the wrong moment. Here's the plain-English version of what it is and how it works.

What an IEC is, plainly

An Import Export Code is a ten-digit code issued by the DGFT — the Directorate General of Foreign Trade. Any Indian business that wants to legally import or export goods and services, clear those goods through customs, or receive certain foreign remittances needs one. Think of it as your trade licence number: without it, customs simply won't process your shipment, whichever direction it's going.

Who needs one — and who doesn't

If you're trading across a border, you need an IEC. If you sell purely within India, you don't. The good news is that the structure of your business rarely gets in the way: proprietorships, partnerships, LLPs and companies can all apply. The one thing that matters is filing under the right constitution with matching documents, because a mismatch there is a common reason applications get kicked back. Our IEC registration service confirms that fit before anything is submitted.

The documents DGFT wants

The list is short but specific: the PAN of the applicant or business, a valid ID such as Aadhaar, a bank certificate or a cancelled cheque in the business's name, and address proof for the registered premises. The value of checking these before filing is that a small mismatch — a name that doesn't match the bank record, an out-of-date address proof — is exactly what turns a few-day approval into a drawn-out back-and-forth. Getting them right the first time is most of the job.

IEC and GST are separate — but you probably need both

A common confusion: you do not need a GST registration to obtain an IEC; they're two independent registrations. In practice, though, most active importers and exporters need both, because GST applies to how you trade domestically and file returns. If you're setting up the whole operation, our GST registration service handles that side, including the LUT filing that lets exporters ship without paying IGST upfront.

The AD code step everyone forgets

Here's the detail that catches first-time importers out. Having an IEC isn't quite enough on its own — customs won't clear your shipment until your IEC is linked to your bank's AD code, the Authorised Dealer code your bank uses for foreign-exchange transactions. It's a straightforward step, but it has to be done at the bank before your first shipment, and discovering it at the port is a bad time to learn it exists.

How long it takes — and why we won't promise a date

Once the documents are in order, an IEC typically issues within a few working days. But that timeline is set by DGFT, not by us, and it can extend if the department raises a query. Anyone guaranteeing you a specific approval date is guessing — the honest commitment is to file it correctly so a query is less likely, and to handle any clarification directly with DGFT if one comes up, rather than leaving you to decipher department correspondence.

The annual update that quietly deactivates codes

The IEC itself doesn't expire, which lulls people into ignoring it. But DGFT requires an annual online update, filed between April and June, even if nothing about your business has changed. Miss it, and the code is deactivated — often discovered only when a shipment is stuck. It's a two-minute formality with an outsized consequence, which is exactly the kind of thing a compliance plan exists to remember for you.

The IEC is one piece of a larger setup that usually also includes GST, an AD code link and a freight arrangement — the import-export setup bundle covers the starter stack, and freight forwarding handles the shipments once you're cleared to trade. Note that DGFT charges its own portal fee, separate from any service fee. If you'd like your IEC filed right the first time, with the documents checked before submission, start your registration and we'll tell you honestly where you stand.