Step-by-Step Guide
5 Steps
How to Get an Import Export Code (IEC) in India
Step by step guide on how to apply for an Import Export Code (IEC) online through the DGFT portal. Covers eligibility, required documents, application process, fees, IEC modification, annual update, and common mistakes to avoid. Updated for 2026.
Quick Overview
Estimated Cost
₹500
Time Required
1 to 3 Working Days
Total Steps
5 Steps
What You'll Need
Documents Required
- PAN Card of the business entity (company PAN for companies, individual PAN for proprietorships)
- Aadhaar Card of the applicant or authorized signatory
- Certificate of Incorporation for companies and LLPs
- Current account bank details including account number, IFSC code, and bank certificate or cancelled cheque
- Digital Signature Certificate (DSC) of Class 2 or above for companies and LLPs
- Passport-size photograph of the applicant or authorized signatory
- Proof of registered office or business address (rent agreement or ownership proof with utility bill)
- MOA/AOA for Private Limited Companies or LLP Agreement for LLPs
- Board Resolution or authorization letter for company applicants
Tools & Prerequisites
- Access to the DGFT portal (dgft.gov.in)
- Class 2 or above Digital Signature Certificate (DSC) for companies and LLPs
- Valid email address and mobile number for OTP verification
- Internet banking or debit card for paying the application fee online
An Import Export Code (IEC) is your gateway to international trade. Whether you are a startup looking to export software services, a manufacturer wanting to import raw materials, or an e-commerce seller planning to sell products globally, the IEC is a mandatory registration that authorizes you to engage in cross-border trade. This guide walks you through the complete process of obtaining an IEC online through the DGFT portal, from checking eligibility to filing the annual update.
The good news is that the IEC application process is now fully online, costs only 500 rupees, and takes just 1 to 3 working days. With the right documents ready, you can complete the entire process in under an hour.
What Is an Import Export Code and Why Do You Need It?
The Import Export Code is a 10-digit identification number issued by the Directorate General of Foreign Trade (DGFT), a body under the Ministry of Commerce and Industry. It serves as the primary business identification for any entity involved in importing or exporting goods or services from or to India.
When Is an IEC Mandatory?
- Importing goods: Raw materials, machinery, components, finished products - customs will not clear any commercial import without verifying the importer's IEC
- Exporting goods: Manufacturers and traders shipping products to international buyers need an IEC for customs clearance of outbound shipments
- Exporting services: IT companies, consultants, freelancers, and any other service providers receiving foreign currency payments should have an IEC for bank processing and FEMA compliance
- Claiming export incentives: Benefits under schemes like RoDTEP (Remission of Duties and Taxes on Exported Products), SEIS (Service Exports from India Scheme), duty drawback, and advance authorization all require a valid IEC
- Receiving foreign inward remittances: Banks processing SWIFT transfers and foreign currency payments often require the beneficiary's IEC for compliance purposes
Since 2014, the IEC number is the same as the PAN number of the applicant entity. For a company, the IEC is the company PAN. For a sole proprietor, the IEC is the individual PAN. However, you still need to formally apply for and obtain the IEC through the DGFT portal; simply having a PAN does not automatically grant you IEC status.
Who Needs an IEC - Entity-Wise Breakdown
| Entity Type | PAN Used for IEC | DSC Required | Special Notes |
|---|---|---|---|
| Private Limited Company | Company PAN | Yes (Director's Class 2 DSC) | Board Resolution required |
| LLP | LLP PAN | Yes (Designated Partner's DSC) | Partner consent required |
| Partnership Firm | Firm PAN | Optional (can use Aadhaar e-sign) | Partnership Deed (drafting guide) needed |
| Sole Proprietorship | Individual PAN | No (Aadhaar e-sign accepted) | Business address proof needed |
| One Person Company | Company PAN | Yes (Director's DSC) | Board Resolution required |
| Public Limited Company | Company PAN | Yes (Director's DSC) | Board Resolution required |
Documents Required for IEC Registration
For Companies and LLPs
- Company or LLP PAN Card (the PAN number becomes your IEC)
- Certificate of Incorporation issued by MCA
- MOA and AOA (for companies) or LLP Agreement (for LLPs)
- Board Resolution or Authorization Letter naming the person authorized to apply for IEC on behalf of the entity
- Digital Signature Certificate (DSC) of the authorized director or designated partner (Class 2 or above). See our guide on how to get a DSC
- Current account details - bank account number, IFSC code, and a cancelled cheque or bank certificate confirming the account. Open a company current account if you have not yet
- Registered office address proof - rent agreement or ownership deed with a recent utility bill
- Passport-size photograph of the authorized signatory
- Aadhaar Card of the authorized signatory
For Sole Proprietorships and Partnership Firms
- PAN Card of the individual (proprietorship) or firm (partnership)
- Aadhaar Card of the proprietor or managing partner
- Business address proof (rent agreement, utility bill, or property papers)
- Bank account details with a cancelled cheque
- Passport-size photograph
- Partnership Deed (for partnership firms)
- Business registration proof - GST Certificate, Udyam Certificate, or Shop and Establishment License
For companies and LLPs, the biggest bottleneck in the IEC application process is often the Digital Signature Certificate. DSC issuance takes 1 to 3 days, and you need to register it on the DGFT portal before starting the application. Plan ahead and get your DSC issued and registered in advance.
Step by Step Process to Apply for IEC Online
Step 1: Register on the DGFT Portal
Visit dgft.gov.in and click on the "Register" button at the top right. Enter the following details:
- PAN Number: Company PAN for companies/LLPs, individual PAN for proprietorships
- Email Address: Use the official business email address
- Mobile Number: The authorized signatory's mobile number
Verify your email and mobile through the OTPs sent by the system. Set a login password. Once registered, log into the portal and complete your entity profile with details like entity name, type of entity (company, LLP, proprietorship), registered address, and authorized person details.
Step 2: Register Your DSC on the DGFT Portal (For Companies and LLPs)
After logging in, navigate to My Profile and then Register DSC. Insert the USB token containing your DSC, and the portal will detect and register it. This step links your Digital Signature to your DGFT account, enabling you to sign applications digitally. The DSC registration typically completes instantly.
Step 3: Navigate to the IEC Application Form
After logging in, go to Services then IEC then Apply for IEC. The system will display the application form ANF-2A (Aayaat Niryaat Form 2A). Some fields will be pre-populated from your profile.
Step 4: Fill in the Application Form ANF-2A
Complete the following sections of the form:
- Applicant Details: Name, PAN, Aadhaar, date of birth of the applicant/authorized signatory
- Entity Details: Company name, date of incorporation, type of entity, CIN or LLPIN number
- Registered Office Address: Full address with PIN code
- Branch Addresses: If applicable (these are additional business locations)
- Bank Account Details: Account number, IFSC code, bank name, branch name (this is the account linked to your IEC for trade payments)
- Nature of Business: Whether you are a manufacturer, trader, service provider, or combination
- Products/Services: Primary products you plan to import or export
- Director/Partner Details: Details of all directors (for companies) or partners (for LLPs/partnerships)
Step 5: Upload Required Documents
Upload scanned copies of all required documents in PDF or JPG format. Ensure the documents are clear and legible. The file size limit is typically 5 MB per document. Key uploads include:
- PAN Card of the entity
- Aadhaar Card of the applicant
- Certificate of Incorporation
- Cancelled cheque or bank certificate
- Address proof of registered office
- Passport-size photograph of the applicant
- Board Resolution (for companies)
Step 6: Sign with DSC or Aadhaar e-Sign and Submit
Review the complete application for accuracy. Once verified, sign the application digitally:
- For Companies and LLPs: Sign using the registered DSC of the authorized director/designated partner
- For Sole Proprietors: Use Aadhaar-based e-sign (OTP verification through Aadhaar-linked mobile)
Step 7: Pay the Application Fee
After signing, the portal will redirect you to the payment page. Pay the application fee of 500 rupees through internet banking, debit card, or credit card. After successful payment, the application is submitted. You will receive an acknowledgement receipt with an application reference number.
Step 8: Download the IEC Certificate
DGFT processes the application and generates the IEC typically within 1 to 3 working days. You will receive an email notification when the IEC is issued. Log into the DGFT portal, navigate to Services then IEC, and download your IEC certificate. The certificate contains your IEC number (same as PAN), entity details, registered address, and authorized signatory information.
With your IEC issued, you are now authorized to import and export goods and services. The next steps include registering on ICEGATE (customs electronic portal), completing AD Code registration at your customs port, and setting up logistics and customs clearance partnerships.
What to Do After Getting Your IEC
Register on ICEGATE for Customs Filing
ICEGATE (icegate.gov.in) is the Indian Customs Electronic Gateway used for filing Bills of Entry (imports) and Shipping Bills (exports). Register your entity on ICEGATE using your IEC number, PAN, and email. This portal is essential for electronic customs processing and tracking shipment status.
Complete AD Code Registration at Customs Ports
Register your bank's AD Code at each customs port, airport, or ICD where you plan to conduct import/export operations. This links your bank account to the customs system for processing duty payments and export incentive disbursements. See our AD Code registration page for the process.
Apply for GST Registration
If you have not already registered for GST, do so before starting import or export operations. Imports attract IGST at the customs port, and exporters need GST registration to file LUT (Letter of Undertaking) for zero-rated supply of goods and services. See our GST registration guide.
Get RCMC from the Relevant Export Promotion Council
Register with the appropriate Export Promotion Council (EPC) based on your product category to obtain a Registration Cum Membership Certificate (RCMC). This certificate is required to claim export incentives under the Foreign Trade Policy including RoDTEP and SEIS benefits.
Open an EEFC Account (Optional)
An Exchange Earners Foreign Currency (EEFC) Account allows exporters to retain a portion of their foreign exchange earnings (up to 100 percent) in a foreign currency account with an authorized dealer bank. This is useful for businesses that have both exports and imports, as they can use foreign currency earnings directly for import payments, avoiding exchange rate fluctuations and conversion costs.
Consider Getting DGFT Digital Signature Certificate
If you plan to apply for various DGFT licenses, authorizations, or incentive claims, having a DGFT-specific DSC can streamline the process.
IEC Annual Update - Mandatory Yearly Compliance
Since 2022, all IEC holders must file an annual update on the DGFT portal between April 1st and June 30th every year. This is a simple process but failure to comply results in deactivation of the IEC.
How to File the Annual Update
- Log into the DGFT portal (dgft.gov.in) using your registered credentials
- Navigate to Services then IEC then IEC Annual Update
- Review all the details displayed - entity name, address, bank account, directors/partners
- If changes are needed, update the relevant fields and upload supporting documents
- If no changes are needed, simply confirm that the details are correct
- Submit the update - there is no fee for the annual update
Non-filing of the IEC annual update by June 30th leads to automatic deactivation of your IEC. This means you cannot use it for any import/export transaction or to claim any trade benefits. While reactivation is possible by filing the update later, the disruption to your trade operations can be costly. Set a calendar reminder for April 1st every year to complete this process.
Common Mistakes to Avoid
- PAN mismatch: Ensure the PAN number entered in the application exactly matches the PAN card. Any mismatch in name, date, or number will cause rejection
- Incorrect entity type: Select the correct constitution of business (Private Limited, LLP, Proprietorship, etc.) on the DGFT portal. An incorrect selection creates processing issues
- Bank account not in entity name: The bank account provided must be in the entity's name (company name for companies, proprietor's trade name for proprietorships). A personal account not linked to the business will be rejected
- Unclear document uploads: Blurry or partially scanned documents are a common cause of delays. Ensure all uploads are clear, complete, and within the file size limit
- DSC not registered: For companies and LLPs, the DSC must be registered on the DGFT portal before starting the application. Attempting to sign without prior registration will fail
- Forgetting the annual update: Mark April to June in your compliance calendar for the annual IEC update. Deactivation can halt your trade operations entirely
- Not registering on ICEGATE: Getting the IEC is only step one. Without ICEGATE and AD Code registration at the customs port, you cannot actually file shipping or import documents
Using IEC for Different Business Models
IT and Software Service Exporters
If you run a software company, IT services firm, BPO, or digital agency serving international clients, an IEC ensures smooth processing of your inward foreign remittances. Register for GST and file an LUT (Letter of Undertaking) to export services without charging GST. Your bank will issue a FIRC (Foreign Inward Remittance Certificate) for each payment received from abroad, which is used for filing GST returns and income tax.
E-Commerce Cross-Border Sellers
If you sell products internationally through Amazon Global, eBay, Shopify, or your own website, the IEC authorizes customs clearance for your outbound shipments. Use e-commerce export facilitation channels that offer simplified customs procedures for smaller shipments. Logistics partners like DHL eCommerce, FedEx, and India Post offer export shipping with IEC-linked documentation.
Manufacturers Importing Raw Materials
Manufacturers who import raw materials, components, or machinery need the IEC for customs clearance. Explore Advance Authorization under the Foreign Trade Policy which allows duty-free import of inputs for export production. Also consider the EPCG (Export Promotion Capital Goods) Scheme for importing capital goods at zero or reduced customs duty with an export obligation.
Import Trading Companies
If you import finished goods for resale in India, the IEC is your starting point. Understand the customs duty structure (Basic Customs Duty + Social Welfare Surcharge + IGST + Compensation Cess) for your product categories using the correct HSN codes. Factor these costs into your pricing to maintain profitability. Consider applying for Authorized Economic Operator (AEO) status for faster customs clearance as your import volumes grow.
Costs Associated with IEC and International Trade Setup
| Item | Cost | Notes |
|---|---|---|
| IEC Application Fee (DGFT) | 500 rupees | One-time, non-refundable |
| IEC Annual Update | Free | Must be filed April to June every year |
| IEC Modification | 200 rupees | Per modification request |
| Digital Signature Certificate (DSC) | 500 to 2,000 rupees | Required for companies and LLPs only |
| AD Code Registration | Typically free | Bank and customs processing |
| ICEGATE Registration | Free | Online registration |
| RCMC from Export Promotion Council | 1,000 to 10,000 rupees | Varies by council and membership tier |
| Professional Fees (CA/CS for IEC) | 1,500 to 5,000 rupees | If using professional help (includes govt fee) |
Conclusion
Getting an Import Export Code is a simple, affordable, and entirely online process that opens the door to international trade for your business. The IEC costs just 500 rupees, takes 1 to 3 working days to obtain, is valid for a lifetime, and covers all your import and export activities under a single registration.
The key is to prepare your documents in advance (especially the DSC for companies), ensure your bank account is in the entity's name, and complete the DGFT portal registration carefully. After obtaining the IEC, follow up with ICEGATE registration, AD Code setup, and GST registration to have a complete trade operation infrastructure in place.
Remember to file the annual update every April to June to keep your IEC active. And as your trade volumes grow, explore export incentive schemes, advance authorizations, and AEO status to maximize benefits and streamline operations.
Need help with IEC registration, customs documentation, or setting up your international trade operations? Our team at IncorpX can assist you through every step.
Frequently Asked Questions
What is an Import Export Code (IEC)?
An Import Export Code (IEC) is a 10-digit unique identification number issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, Government of India. It is mandatory for any person or entity that wants to import or export goods or services from or to India. The IEC is required by customs authorities at the time of clearance of goods and by banks for processing international trade payments. Since 2014, the IEC number is the same as the PAN number of the applicant, making it easier to track and manage.
Who needs an Import Export Code?
Any individual, company, firm, or organization that wants to engage in commercial import or export of goods or services needs an IEC. This includes: 1. Private Limited Companies and Public Limited Companies, 2. LLPs, 3. Partnership Firms, 4. Sole Proprietorships, 5. HUFs, Trusts, and Societies. Even if you are a service exporter (such as an IT company providing software services to international clients), you need an IEC for receiving foreign currency payments through banking channels.
Who is exempt from getting an IEC?
The following are exempt from obtaining an IEC: 1. Central and State Government ministries and departments, 2. Persons importing or exporting goods for personal use not connected with trade, manufacture, or agriculture, 3. Persons importing or exporting goods to or from Nepal and Myanmar through Indo-Myanmar border areas and Indian customs stations specified, provided the CIF value does not exceed 25,000 rupees per consignment, 4. Notified categories under the Foreign Trade Policy that are specifically exempted. For all commercial trade activities, the IEC is mandatory.
How much does the IEC registration cost?
The government fee for IEC registration is 500 rupees, payable online through the DGFT portal at the time of application submission. There are no annual renewal fees as the IEC is valid for a lifetime (with the requirement to update it annually). If you engage a professional (CA, CS, or consultant) to handle the application, their service charges typically range from 1,500 to 5,000 rupees including the government fee and DSC costs if applicable.
How long does it take to get an IEC?
The IEC is typically issued within 1 to 3 working days from the date of submission of a complete application with all documents. In many cases, the IEC is generated within 24 hours as the process is now largely automated on the DGFT portal. Delays can occur if the application has errors, uploaded documents are unclear, or if the PAN details do not match the information provided. Once issued, the IEC certificate can be downloaded directly from the DGFT portal.
Is the IEC number different from the PAN number?
Since 2014, the IEC number is the same as the PAN number of the applicant entity. For a company, the IEC will be the company's PAN. For a sole proprietor, the IEC will be the individual's PAN. This simplification was introduced to reduce paperwork and make the system more efficient. While the number is the same, you still need to formally apply for and obtain the IEC through the DGFT portal. Simply having a PAN does not automatically mean you have an IEC.
Do I need a Digital Signature Certificate (DSC) to apply for IEC?
For companies and LLPs, yes, a Class 2 or above Digital Signature Certificate (DSC) of the authorized director or designated partner is required to digitally sign the IEC application on the DGFT portal. For sole proprietors, the application can be signed using Aadhaar-based e-sign (OTP verification) instead of a DSC. If you need a DSC, see our guide on how to get a Digital Signature Certificate. The DSC should be registered on the DGFT portal before starting the IEC application.
Can I apply for IEC without a current bank account?
A bank account is a mandatory requirement for the IEC application. You need to provide the bank account number, IFSC code, and upload a cancelled cheque or bank certificate as proof. This is the account through which your international trade payments will be processed. For newly incorporated companies, open a company current account first and then apply for the IEC.
Can a sole proprietor get an IEC for import export?
Yes, a sole proprietor can obtain an IEC. The IEC will be issued against the individual PAN card of the proprietor. The required documents include the proprietor's PAN card, Aadhaar card, bank account details (can be a savings or current account in the proprietor's name with the trade name), business address proof, and a passport-size photograph. Sole proprietors can sign the application using Aadhaar e-sign and do not need a DSC.
Is IEC needed for exporting software services?
Yes, an IEC is required for exporting services including IT services, software development, consulting, and other professional services. While the customs authority is not involved in service exports (no physical goods cross the border), the bank processing your inward foreign currency remittance (FIRC) will typically ask for your IEC number. The IEC is also required for claiming benefits under foreign trade policy, for SEIS (Service Exports from India Scheme) incentives, and for FEMA compliance related to service exports.
What is the validity of an IEC?
An IEC is valid for the lifetime of the entity and does not need to be renewed. However, since 2022, the DGFT requires all IEC holders to file an annual update in the April to June window every year. The annual update is a simple process of logging into the DGFT portal, verifying that all details in the IEC are correct, and submitting the update at no cost. Failure to file the annual update by June 30th can lead to the IEC being deactivated by DGFT.
What is the IEC annual update and how do I file it?
The IEC annual update is a mandatory yearly compliance introduced by DGFT in 2022. Between April 1st and June 30th every year, all IEC holders must log into the DGFT portal, review their IEC details, make any necessary corrections, and confirm that the information is accurate. The update is filed online and is free of cost. If no changes are needed, you simply verify and confirm. If you have changed your address, bank account, director details, or other information, update them during this window. Non-filing results in deactivation of the IEC, which prevents you from using it for any import or export transaction until it is reactivated.
What happens if I do not file the IEC annual update?
If you fail to file the annual update by June 30th, your IEC will be deactivated by DGFT. A deactivated IEC cannot be used for customs clearance, bank transactions related to foreign trade, or claiming any benefits under the Foreign Trade Policy. To reactivate, you need to file the annual update at a later date, which reactivates the IEC. There is no penalty for late filing, but your import/export operations will be disrupted during the period the IEC is deactivated. Set a reminder for April every year to complete this process.
Can I modify or amend my IEC after it is issued?
Yes, you can modify your IEC details at any time by logging into the DGFT portal and filing a modification application. The modification fee is 200 rupees. Common modifications include change of address, addition or deletion of directors/partners, change of bank account details, change of authorized signatory, and change of business constitution. Some changes (like entity name change) may require submission of supporting documents like an updated Certificate of Incorporation from MCA.
Do I need an IEC if I only want to import goods, not export?
Yes, an IEC is required for both importing and exporting. Whether you are importing raw materials, machinery, components, or finished goods for resale in India, you need a valid IEC for customs clearance. The same applies if you only export. A single IEC covers both import and export activities, and there is no separate code for each.
What is the difference between IEC and AD Code?
The IEC (Import Export Code) is a mandatory registration with DGFT that authorizes you to engage in import/export activities. The AD Code (Authorized Dealer Code) is a 14-digit code of your bank branch that you need to register at the customs port where you will be clearing goods. The AD Code links your bank account to the customs system for processing duty payments and receiving drawback benefits. You need both an IEC and an AD Code registration at the relevant customs port. See our page on AD Code registration for more details.
Can I use IEC to import goods for personal use?
No, the IEC is for commercial import and export only. Goods imported for personal use (not connected with trade, manufacture, or agriculture) are exempt from the IEC requirement. However, if you are importing goods in commercial quantities for resale, manufacturing, or business use, you need an IEC regardless of the value. The customs authority determines whether an import is for personal or commercial use based on the nature, quantity, and frequency of imports.
What is the DGFT portal and how do I register?
The DGFT portal (dgft.gov.in) is the official website of the Directorate General of Foreign Trade where all IEC-related applications, modifications, and annual updates are processed. To register: visit dgft.gov.in, click on 'Register', enter your PAN number, email address, and mobile number, verify through OTPs sent to your email and mobile, set a password, and complete your profile. You will need this login for the IEC application and for all future DGFT interactions including claiming export benefits, filing annual updates, and applying for licenses.
Can one company have multiple IECs?
No, an entity can have only one IEC. Since the IEC number is the PAN number, and each entity has only one PAN, there can only be one IEC per entity. If you operate multiple businesses under different legal entities (each with its own PAN), each entity will have its own IEC. However, a single entity cannot obtain multiple IECs. If you have branch offices in different states, they all operate under the same IEC.
What are the penalties for importing or exporting without an IEC?
Importing or exporting goods without a valid IEC is a violation of the Foreign Trade (Development and Regulation) Act 1992. Penalties include seizure and confiscation of goods by customs, monetary penalties up to five times the value of the goods, and potential criminal prosecution in serious cases. Banks will also not process any foreign trade payment without verifying the IEC. Additionally, without an IEC you cannot claim any duty drawback, export incentives, or benefits under the Foreign Trade Policy.
Is GST registration required before applying for IEC?
No, GST registration is not a prerequisite for obtaining an IEC. You can apply for IEC before or after GST registration. However, for practical purposes, many importers and exporters apply for both simultaneously since both are needed before starting trade operations. Import of goods attracts IGST (Integrated GST) at customs, and export of goods can be done under LUT (Letter of Undertaking) for zero-rated supply, both of which require GST registration. So while not mandatory before IEC, GST registration is needed before actual import/export operations begin.
How do I register my IEC with the customs department?
After obtaining the IEC, you need to register it with the customs authority at the ports from where you will be importing or exporting goods. This is done by filing your IEC details along with the AD Code (Authorized Dealer Code of your bank) at the customs house. The process is largely online through the ICEGATE portal (Indian Customs Electronic Gateway). You need to create an account on ICEGATE, enter your IEC details, and register at the specific customs stations where you will be operating. This linkage enables customs to track your shipments and process duty payments.
Can I start importing/exporting immediately after getting the IEC?
Technically yes, but there are a few additional steps before your first shipment: 1. Register on the ICEGATE portal for electronic customs filing, 2. Complete AD Code registration at the customs port, 3. Apply for GST registration (if not already done) since customs duty payments and input tax credits require GST, 4. Register for FEMA compliance with your bank for processing foreign currency transactions, 5. Engage a Customs House Agent (CHA) or customs clearance service for handling documentation at the port, 6. Understand the HSN codes and duty structure for your specific products.
What is RCMC and do I need it along with IEC?
RCMC stands for Registration Cum Membership Certificate issued by Export Promotion Councils (EPCs) or Commodity Boards. While an IEC is sufficient to start importing or exporting, an RCMC is needed to claim export incentives and benefits under the Foreign Trade Policy such as MEIS (now replaced by RoDTEP), SEIS, and other promotional schemes. The RCMC is issued by the relevant EPC based on your product category (for example, FIEO for general exports, EPC for engineering goods, Apparel Export Promotion Council for textiles). It is recommended to obtain RCMC soon after starting export operations.
Can an IEC be cancelled or surrendered?
Yes, you can voluntarily surrender your IEC if you no longer wish to engage in import/export activities. File a surrender request on the DGFT portal. DGFT may also cancel or suspend an IEC if the holder is found to be involved in fraudulent activities, has violated provisions of the Foreign Trade Act, or has been blacklisted by customs or other government agencies. A suspended or cancelled IEC cannot be used for any trade transaction until it is reinstated.
Do freelancers and consultants need an IEC for receiving foreign payments?
If you are a freelancer or consultant receiving payments from foreign clients for services rendered, technically you need an IEC for the bank to process the inward foreign remittance through proper banking channels. However, banks sometimes process small foreign remittances for individuals without IEC verification. For regular and substantial foreign income, obtaining an IEC is strongly recommended as it ensures smooth bank processing, FEMA compliance, and enables you to claim export-related benefits. The process is simple and inexpensive (500 rupees) for sole proprietors.
What is the process for importing goods after getting an IEC?
After obtaining your IEC, the import process involves: 1. Finalize the purchase order with your foreign supplier, 2. Receive the commercial invoice, packing list, and bill of lading/airway bill from the supplier, 3. File a Bill of Entry at the customs port through ICEGATE (usually done by your customs clearing agent), 4. Pay applicable customs duty, IGST, and cess, 5. Customs inspects and clears the goods, 6. Take delivery from the port. The entire customs clearance process takes 2 to 5 days for most shipments. Having a reliable customs clearance partner is essential for smooth import operations.
What is the process for exporting goods after getting an IEC?
The export process involves: 1. Receive the purchase order from your foreign buyer, 2. File a Shipping Bill at the customs port through ICEGATE, 3. Present the goods for customs inspection and examination, 4. Customs grants Let Export Order (LEO) after clearance, 5. Goods are loaded onto the vessel/aircraft, 6. Submit export documents to your bank for realization of payment, 7. File SOFTEX form (for software exports) or provide FIRC as evidence of receipt of foreign exchange, 8. Claim applicable export incentives such as RoDTEP or duty drawback.
How do I apply for IEC as a Private Limited Company?
The process for a Private Limited Company involves: 1. Register on the DGFT portal using the company PAN, 2. Ensure you have a Class 2 DSC of the authorized director registered on the portal, 3. Prepare a Board Resolution authorizing the director to apply for IEC, 4. Fill form ANF-2A with company details, director details, bank account information, and nature of business, 5. Upload the Certificate of Incorporation, company PAN, board resolution, cancelled cheque, and director's DSC details, 6. Sign with DSC, pay 500 rupees, and submit. The IEC is typically issued within 1 to 3 days.
Can I get an IEC for a new company that has not started operations?
Yes, you can apply for an IEC immediately after incorporation. There is no requirement to have started business operations, generated revenue, or completed a minimum period of existence. Many companies apply for the IEC in the first week after incorporation along with other registrations like GST and MSME. The only prerequisite is having a PAN card and a bank account in the company's name.
What are the benefits of having an IEC?
Key benefits include: 1. Legal authorization to import and export goods and services, 2. Access to export incentives and benefits under the Foreign Trade Policy (RoDTEP, SEIS, duty drawback), 3. Eligibility to participate in international trade fairs and exhibitions supported by the government, 4. Smooth processing of foreign currency payments by banks (both inward and outward remittances), 5. Ability to access export credit and trade finance from banks, 6. Registration on government e-marketplace (GeM) for export of goods to foreign government agencies, 7. Access to ECGC (Export Credit Guarantee Corporation) insurance for protecting against buyer default.
What is the Foreign Trade Policy and how does it affect IEC holders?
The Foreign Trade Policy (FTP) is issued by DGFT every 5 years and sets out the regulations, incentives, and procedures for India's foreign trade. The current FTP (2023-28) introduced the RoDTEP scheme (Remission of Duties and Taxes on Exported Products) replacing MEIS, the Amnesty Scheme for one-time resolution of trade-related disputes, and reformed the advance authorization and EPCG schemes for duty-free import of inputs and capital goods. As an IEC holder, you are eligible to claim benefits under these schemes, but you need to understand the specific conditions, documentation, and timelines for each. Your customs clearance agent or trade consultant can guide you.
Can I import and export from any port in India with a single IEC?
Yes, a single IEC allows you to import and export from any customs port, airport, or inland container depot (ICD) in India. However, you need to register your IEC and AD Code at each customs station where you plan to operate. This registration is a one-time process at each port. Major ports include JNPT (Mumbai), Chennai Port, Mundra Port, Kolkata Port, and airports like Delhi, Mumbai, Bangalore, and Hyderabad. You can add new ports at any time without modifying your IEC.
What is the HSN code and why is it important for IEC holders?
HSN (Harmonized System of Nomenclature) is an internationally standardized system of names and numbers to classify traded products. Every product imported or exported is assigned a specific HSN code that determines the customs duty rate, IGST rate, and applicability of export incentives. Using the wrong HSN code can result in wrong duty assessment, delayed customs clearance, and legal complications. You can find the correct HSN code for your products on the CBIC (Central Board of Indirect Taxes and Customs) website or through your customs clearing agent. Export incentive rates (like RoDTEP) are also specified per HSN code.
Do I need separate IECs for different products?
No, a single IEC covers the import and export of all products and services. You do not need separate IECs for different product categories. When filing customs documents (Bill of Entry for imports, Shipping Bill for exports), you specify the HSN code and details of the specific products being traded. The IEC itself is not product-specific or industry-specific.
What is an Authorized Dealer (AD) Code and how do I register it?
An AD Code is a 14-digit code assigned to your bank branch by the Reserve Bank of India. This code needs to be registered at the customs port to link your bank account with the customs system for processing duty payments, refunds, and export incentives. To register: 1. Obtain the AD Code from your bank branch (it appears on your bank account statement or can be requested from the bank), 2. Submit a request to the customs authority at the port where you plan to trade along with your IEC, bank account details, and a letter from the bank confirming the AD Code, 3. The customs authority registers the AD Code, typically within 2 to 3 days. See our AD Code registration page for assistance.
Can I use IEC for trading on e-commerce platforms internationally?
Yes, an IEC is required for cross-border e-commerce whether you are selling products on Amazon Global, eBay, Etsy, or your own international website. The IEC enables customs clearance of your outbound shipments and allows banking channels to process your foreign currency earnings. Many e-commerce logistics providers like DHL, FedEx, and Amazon FBA require your IEC number during onboarding. For small shipments up to a certain value, there are simplified customs procedures available for e-commerce exporters.
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