Import Export Code (IEC): Who Needs It and How to Get It
The IEC is the ten-digit code every importer and exporter in India needs. Here is the process and the common pitfalls.
By Legal Munshi Expert Desk
The Import Export Code, or IEC, is a ten-digit code issued by the Directorate General of Foreign Trade. It is the basic registration required to import into or export from India.
Who needs it
Any person or business that imports or exports goods or services needs an IEC, with a few exceptions such as imports for personal use and certain government and charitable imports. Banks require the IEC before they will process an import or export transaction, and customs uses it to identify the importer or exporter.
How it is obtained
The application is filed online on the DGFT portal. It requires the PAN of the business or individual, bank details with a cancelled cheque or bank certificate, and proof of the address of the business. The code is usually issued within a few working days.
One IEC per entity
An IEC is issued against a PAN and is specific to that entity. A business does not need a separate code for each product or destination. Once issued, the IEC is valid for all imports and exports of that entity.
Keeping it active
The IEC must be linked to a bank account and is subject to periodic updating. Where the details change — the bank account, the address or the constitution of the business — the IEC should be updated. Failure to update within the required period can lead to deactivation, which will block shipments.
Common pitfalls
The usual problems are a mismatch between the name on the PAN and the name on the bank account, an address proof that does not match the business records, and letting the IEC lapse by not updating it. Because the bank and customs both rely on the IEC, a deactivated code stops a shipment immediately.
After you have the IEC
The IEC is the starting point, not the whole picture. Depending on what you trade, you may also need registrations with other agencies, and you should understand the customs procedures for your product category before your first shipment.