You need an Importer Exporter Code (IEC) if your business imports goods into India or exports goods out of it; customs will not clear a commercial shipment without one, and DGFT schemes and authorisations are linked to it. The IEC is issued online by the Directorate General of Foreign Trade (DGFT), it is tied to your PAN (one PAN, one IEC), and it does not expire. But it can be deactivated: every IEC holder must update or confirm the IEC details online each year between April and June, even if nothing has changed.
That annual step is the one most small exporters miss. If you are not sure whether your IEC is current or would like help setting one up, our IEC registration service handles the application and the yearly update.
Who needs an IEC
Paragraph 2.07 of the DGFT Handbook of Procedures states that an IEC is compulsory for imports and exports, and then lists the exempted categories. In practice, an IEC is needed by:
- manufacturers importing raw material, components or machinery;
- traders and D2C brands importing goods for resale;
- exporters of goods, including small exporters shipping through courier or e-commerce export channels;
- anyone applying for DGFT authorisations or export benefits, which are issued against the IEC.
The IEC covers all branches, divisions, units and factories of the same PAN holder (para 2.10).
Who is exempt
Paragraph 2.07 exempts these categories from obtaining an IEC:
- importers and exporters covered by specified clauses of the Foreign Trade (Exemption from application of Rules in certain cases) Order, 1993;
- ministries and departments of the Central or State Government;
- persons importing or exporting goods for personal use, not connected with trade, manufacture or agriculture;
- persons trading with Nepal, Bhutan and Myanmar (through Indo-Myanmar border areas) where the CIF value of a single consignment does not exceed ₹25,000, and with China through specified border passes up to the consignment values set in the paragraph.
The exemption does not apply to exports of SCOMET items (dual-use goods), except for government ministries and departments. Some exempt categories use permanent IEC numbers notified in the same paragraph, so the customs paperwork still carries a code.
If you import or export as a business, even occasionally, assume you are not exempt.
How the IEC is issued
Under para 2.08, you apply online on the DGFT portal in form ANF-2A, with the fee and documents. The details are validated online against other government and bank records where possible, and the applicant typically uploads:
- a cancelled cheque bearing the entity’s pre-printed name, or a bank certificate in the prescribed format;
- proof of the address of the applicant entity.
The IEC is auto-generated, and you are informed by email and SMS; the e-IEC can be downloaded from the DGFT dashboard. A few rules worth knowing:
- One PAN, one IEC (para 2.12). A company with several units still has a single IEC.
- Permanent validity (para 2.10), unless suspended or cancelled, but subject to deactivation for not updating.
- Changes within 30 days (para 2.14). If your constitution, address, bank details or other primary details change, the IEC must be updated online within 30 days of the change.
- Surrender (para 2.13) is possible online if you stop trading, provided all authorisations and obligations are closed.
The annual update: April to June, every year
The Foreign Trade Policy 2023 (para 2.05) requires every IEC holder to update the IEC details electronically on the DGFT portal every year during April to June. If there is nothing to change, you still log in and confirm the details. The policy then allows an IEC that is not updated within that period to be deactivated. Para 2.15 of the Handbook separately requires the importer-exporter profile to be updated whenever something changes, and at least once a year.
This is not a dormant rule. DGFT has carried out deactivation drives for IECs that were not updated, for example in phases from December 2021 (DGFT Trade Notices 25 and 31 of 2021-22).
What deactivation means for you
- A deactivated IEC cannot be used for customs clearance, so shipments get stuck.
- Applications for DGFT authorisations and benefits under that IEC are affected.
- The fix is to update the IEC online; DGFT has previously said a deactivated IEC is reactivated once it is updated. Do it before your next shipment, not when the goods are at the port.
A simple routine
- Put a recurring reminder for early April.
- Log in to the DGFT portal with the account linked to the IEC.
- Check the IEC details: entity name, address, branches, bank account, directors or partners, contact email and mobile.
- Correct anything outdated, or confirm without changes, and submit.
- Save the confirmation and the updated e-IEC.
If the person who originally set up the DGFT login has left the business, sort out access well before April; recovering an old login takes longer than the update itself.
IEC and your other registrations
Because the IEC is PAN-based, keep the same legal name and address across PAN, GST, the bank account and the IEC. Mismatches are a common reason for validation failures at the time of application or update. Food importers also need a central FSSAI import licence and a valid IEC (FSS (Import) Regulations, 2017, regulation 3), and some products need other permissions, so the IEC is usually the first of several approvals for an importer rather than the only one.
Complianto (complianto.in), operated by Mentorcorp Private Limited, is a private consultancy and is not affiliated with any government body. We do not issue official documents. We charge a professional fee for application assistance and advisory services. Applicants can apply directly to the government without our fees via the official portals: MCA (mca.gov.in), Income Tax (incometax.gov.in), GST (gst.gov.in), MSME (udyamregistration.gov.in), FSSAI (foscos.fssai.gov.in), Startup India (startupindia.gov.in), and IP India (ipindia.gov.in).
This article is general information, not legal or tax advice.
