Import Export Code
In today’s global economy, international trade has become a key growth driver for businesses. Whether you are an entrepreneur, startup, or an established company, importing and exporting goods or services can open new opportunities. However, before starting cross-border trade, it is mandatory to obtain an Import Export Code (IEC).
The Import Export Code is a unique 10-digit number issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce, Government of India. Without this code, no business or individual can legally import or export goods and services from India.
This article provides full details about the Import Export Code (IEC), its importance, documents required, registration process, benefits, and frequently asked questions.
What is Import Export Code?
The Import Export Code (IEC) is an official business identification number that allows individuals or companies to engage in international trade. Once issued, the IEC is valid for a lifetime and does not require renewal.
Every importer needs IEC to clear shipments from customs, while exporters need it to send goods or services abroad and receive payments from foreign clients.
Importance of Import Export Code
The Import Export Code is crucial for several reasons:
- Legal Requirement – IEC is mandatory to start any import-export business in India.
- Global Expansion – Helps businesses access international markets.
- Government Schemes – Enables exporters to avail benefits, incentives, and duty drawbacks from DGFT and Customs.
- Smooth Transactions – Required for receiving or sending foreign currency payments through banks.
- Customs Clearance – Essential for importers to clear goods at ports.
Who Needs Import Export Code?
IEC is necessary for:
- Importers – To legally bring goods into India.
- Exporters – To send goods or services abroad.
- Businesses – To receive payments from overseas clients.
- E-commerce Sellers – To sell products globally through platforms like Amazon, eBay, Flipkart, and Shopify.
Even individuals not registered as companies can apply for an Import Export Code if they wish to trade internationally.
Documents Required for Import Export Code Registration
The following documents are required for Import Export Code registration:
- PAN Card of individual or business entity
- Identity Proof – Aadhaar Card, Passport, or Voter ID
- Business Address Proof – Rent agreement, sale deed, or utility bill
- Bank Details – Cancelled cheque or bank statement
- Digital Photograph of the applicant
For partnership firms or companies, additional documents such as the incorporation certificate or partnership deed may also be required.
Step-by-Step Process for Import Export Code Registration
The process of obtaining an Import Export Code is completely online and involves the following steps:
- Visit DGFT Website – Go to the official DGFT portal.
- Fill Application Form (ANF 2A) – Enter personal and business details.
- Upload Required Documents – PAN, Aadhaar, bank details, and address proof.
- Pay Government Fee – A fee of ₹500 is to be paid online.
- Application Verification – DGFT verifies the application and documents.
- Issuance of IEC – Once approved, the IEC certificate is sent via email and can be downloaded online.
Usually, the process takes 2–5 working days if all documents are correct.
Benefits of Import Export Code
- Lifetime Validity – Once issued, no renewal is required.
- Business Expansion – Opens doors to international trade opportunities.
- Easy Documentation – Simplified process with minimal paperwork.
- Government Support – Access to various subsidies, duty drawback benefits, and incentive schemes.
- Banking Compliance – Required for foreign currency transactions with banks.
Exemptions from Import Export Code
IEC is not required in the following cases:
- Import or export of goods for personal use, not related to trade.
- Transactions by Government departments and certain notified charitable organizations.
- Goods exempted under specific DGFT notifications.
Fees for Import Export Code Registration
- Government Fees – ₹500 (fixed by DGFT).
- Professional Fees – Additional charges may apply if you take help from consultants or service providers.
FAQs on Import Export Code
Q1. Is Import Export Code mandatory for all exporters and importers?
Yes. IEC is mandatory for all businesses or individuals involved in importing or exporting goods and services from India.
Q2. How long does it take to get an Import Export Code?
The registration process usually takes 2–5 working days, provided the documents are correct and the application is properly filed.
Q3. Can an individual apply for Import Export Code?
Yes. Both individuals and businesses can apply. Even a sole proprietor can obtain an IEC.
Q4. Do I need to renew my Import Export Code?
No. IEC comes with lifetime validity and does not require renewal. However, any change in details must be updated with DGFT.
Q5. What happens if I don’t have an Import Export Code?
Without IEC, you cannot legally engage in international trade. Customs authorities will not allow clearance of goods, and banks will not process foreign payments.
Q6. Can one Import Export Code be used for multiple businesses?
No. Each business entity must obtain its own IEC. However, one IEC can be used for all branches of the same entity.