Import Export Code (IEC) — documents, process and timeline

An Import Export Code is a ten-digit number issued by the Directorate General of Foreign Trade against a PAN. No consignment clears Indian customs without one, and no bank will process an inward or outward remittance for a trade transaction without one. It is the single foundational registration for anybody trading across the Indian border.

The code is issued per PAN rather than per business location, so one entity holds exactly one IEC covering all its branches and all its products. It does not expire, and since 2017 it has been the same number as the PAN itself, which removed a layer of confusion for anybody holding both.

What did change materially in 2021 is that an IEC must now be electronically updated between April and June every year, even where nothing whatsoever has changed. An IEC not confirmed in that window is deactivated. The DGFT does not send a meaningful reminder, and the usual way a business discovers the deactivation is a consignment held at customs or a bank refusing a remittance mid-transaction.

Service exporters need one too, and this is less widely understood than it should be. Exporting services does not require an IEC merely to receive payment, but it does to claim any benefit under the Foreign Trade Policy — and it is generally required by banks processing foreign inward remittances against a services invoice under the RBI's purpose codes.

A handful of categories are exempt. Central and state government departments and ministries do not need one, nor do individuals importing or exporting goods for personal use unconnected with trade. Everybody else trading commercially does.

The application itself is straightforward and largely automated. It is filed on the DGFT portal against a digital signature or Aadhaar authentication, and the certificate is usually issued within a working day or two where the PAN, bank and address details all reconcile. Where they do not — a bank account in a slightly different name, or an address that does not match the GST registration — it comes back for correction, which is where the time goes.

The IEC is also the gateway to everything else in foreign trade. RCMC registration with an Export Promotion Council, ICEGATE access for filing bills of entry and shipping bills directly, AD code registration with your bank at each port you ship from, and every duty exemption or remission scheme under the Foreign Trade Policy all sit on top of it. Getting the IEC right is therefore the first step in a sequence rather than a standalone task.

One structural point worth planning around: the IEC is tied to the PAN, so a business that later restructures — a proprietorship incorporating into a private limited company, for instance — needs a fresh IEC in the new entity's name. The old one cannot be transferred, and consignments in transit at the moment of transition need care.

It is worth understanding how the IEC interacts with GST on the export side, because the two registrations do different jobs and both are needed. The IEC gets the consignment through customs; the GST position determines whether you pay IGST on the export and reclaim it, or export under a Letter of Undertaking without paying at all. The second route is almost always better because it does not tie up working capital for the months a refund takes, but the LUT in Form RFD-11 has to be filed at the start of each financial year and lapses annually. An exporter with a current IEC and a lapsed LUT is fully able to ship and obliged to pay IGST on every consignment until the LUT is renewed.

The same reconciliation logic applies to the shipping bill itself. For exports made on payment of IGST, the shipping bill is treated as the refund application, and the refund is processed automatically provided three things agree: the invoice details in GSTR-1, the summary in GSTR-3B, and the shipping bill data transmitted by customs to the GST portal. When a refund does not arrive, it is almost never a decision by an officer — it is a mismatch between those three, most often an invoice number or value entered differently on the shipping bill from the one reported in GSTR-1. Checking the transmission status on ICEGATE is the fastest way to find it.

Key features

One per PAN, for lifeA single code covers every branch, product and port. It does not expire, though it must be confirmed annually to stay active.
Same number as your PANSince 2017 the IEC is the PAN itself, which removed the older separate numbering and simplified reconciliation.
Mandatory annual updateBetween April and June every year, even when nothing has changed. An unconfirmed IEC is deactivated without a useful warning.
Required by customs and by banksCustoms will not clear a consignment and banks will not process a trade remittance without an active code.
Nominal government fee₹500 to apply. The cost of an IEC is not the fee; it is getting the bank and address particulars to reconcile first time.

Who needs it

Anyone importing goods commerciallyFrom the first consignment. Customs clearance is impossible without an active code.
Anyone exporting goodsRequired for the shipping bill and for the bank to process the export proceeds.
Service exporters claiming FTP benefitsNot needed merely to receive payment for services, but required to claim anything under the Foreign Trade Policy.
E-commerce sellers shipping abroadIncluding those using courier mode under the e-commerce export provisions.
Not needed for personal importsIndividuals importing or exporting goods for personal use unconnected with trade are exempt, as are government departments.

Which one applies to you

Fresh IEC applicationA new code for an entity that has none, filed on the DGFT portal against Aadhaar or a digital signature.
Annual updateThe compulsory April to June confirmation. Required even where no particular has changed since last year.
ModificationA change of address, bank account, directors or partners, or the nature of the business. Should be filed as the change happens.
ReactivationFor a code deactivated for a missed annual update. Filing the pending update restores it, but not before the consignment is already held.
SurrenderWhere the entity has ceased trading or been restructured. Leaving a dormant IEC active carries the annual update obligation indefinitely.

Why it is worth doing

Customs clearanceThe practical prerequisite. Without an active IEC a consignment simply does not move, in either direction.
Access to FTP schemesAdvance Authorisation, EPCG, RoDTEP and duty drawback all require an IEC as the identifying registration.
Bank remittance processingAuthorised dealer banks require it to process trade-related inward and outward remittances under RBI purpose codes.
No renewal fee, everThe code itself is permanent and the annual confirmation is free. The only cost is remembering to do it.
The base for RCMC and ICEGATEExport Promotion Council membership and direct customs filing access both hang off the IEC.

What is included

DGFT registration and the IEC application
Digital signature or Aadhaar authentication
IEC certificate
Annual update reminder for April

What we need from you

PAN of the entity
Cancelled cheque or a bank certificate
Proof of the business address
Aadhaar or DSC of the signatory

How it works

DGFT portal registrationAn account is created against the entity PAN, with mobile and email verified by OTP.
Application in ANF-2AEntity details, address, bank particulars and the nature of the business, matched against the PAN and GST records.
AuthenticationSigned with a Class 3 digital signature or authenticated by the signatory's Aadhaar OTP.
Fee paymentThe ₹500 government fee paid online. The application moves to processing immediately.
Certificate issuedUsually within one to two working days where the particulars reconcile, downloadable from the portal.
Annual update calendar setA reminder placed for April so the confirmation is filed before the window closes rather than after a shipment stalls.

IEC and the registrations that sit on top of it

	IEC	RCMC
Issued by	DGFT	Export Promotion Council or commodity board
Needed to clear customs	Yes	No
Needed to claim FTP benefits	Yes, but not sufficient alone	Yes
Validity	Permanent, confirmed annually	Five years
Government fee	₹500	Council membership fee
One per	PAN	Product category and council

What affects the timeline

Whether bank details reconcileThe account name must match the entity name exactly. A proprietorship account in the individual's name rather than the trade name is the commonest mismatch.
Address consistencyThe address should match the GST registration and the PAN record. Divergence draws a query and adds days.
DSC versus AadhaarAadhaar OTP authentication is immediate. A digital signature needs to be issued and installed first, which adds a day or two if you do not already hold one.
Entity typeA proprietorship is near-instant. A company or LLP needs the authorised signatory correctly mapped on the DGFT portal, which is a step more.

What happens afterwards

Update between April and June, annuallyCompulsory even with no changes. This is the single most common reason an established exporter finds their code inactive.
Register your AD code at each portThe authorised dealer bank code must be registered at every port you ship from, or the shipping bill cannot be filed there.
Obtain RCMC if you will claim benefitsRegistration-cum-Membership with the Export Promotion Council covering your product is required for any FTP scheme.
Consider ICEGATE registrationGives direct access to file bills of entry and shipping bills and to track IGST refunds on exports yourself.
File the LUT if exporting under GSTA Letter of Undertaking in RFD-11 at the start of each financial year lets you export without paying IGST and reclaiming it.
Report modifications promptlyA change of bank, address or directors should be updated as it happens rather than saved for the annual window.

What usually goes wrong

Missing the April to June updateThe code is deactivated silently, and it is discovered when customs holds a consignment or a bank refuses a remittance. Reactivation is quick but the shipment has already stopped.
Bank account name mismatchThe account must be in the exact entity name. A trade-name account for a proprietorship, or a personal account, is the most frequent cause of rejection.
Assuming service exporters do not need oneYou can receive payment without it, but you cannot claim any Foreign Trade Policy benefit, and many banks require it for the purpose code.
Not registering the AD code at the portA perfectly valid IEC still will not let you file a shipping bill at a port where your bank's AD code has not been registered.
Applying for more than one IECOne PAN, one code. Multiple codes against a single PAN are not permitted and have to be surrendered.
Leaving a dormant IEC active after restructuringThe annual update obligation continues on the old entity, and the new entity needs a fresh code in its own name.

Questions

Does an IEC expire?

It is issued for life and never expires, but since 2021 it must be electronically updated between April and June each year even when nothing has changed. An IEC that is not confirmed is deactivated, and customs will not clear consignments against a deactivated code.

What does an Import Export Code cost?

The government fee is ₹500 and there is no renewal fee — the annual confirmation is free. The professional cost is in reconciling the bank, address and PAN particulars so the application is not returned, which is where most of the delay occurs.

Do I need an IEC to export services?

Not simply to receive payment, but yes to claim any benefit under the Foreign Trade Policy, and in practice most authorised dealer banks want one to process a foreign inward remittance against a services invoice under the correct RBI purpose code.

Can I use my personal PAN for an IEC?

For a sole proprietorship, yes — the proprietor's PAN is the entity PAN and the IEC is issued against it. For a company, LLP or partnership firm the entity's own PAN must be used, not a director's or partner's.

How long does it take to get an IEC?

Usually one to two working days where the PAN, address and bank particulars all reconcile and Aadhaar authentication is used. Where the bank account name does not match the entity name exactly, the application comes back for correction and can take a week or more.

What is an AD code and do I need one as well?

The authorised dealer code identifies your bank branch to customs, and it must be registered at each port you ship from before a shipping bill can be filed there. A valid IEC alone is not enough — the AD code registration is port-specific and is a separate step.

What happens to my IEC if I convert my proprietorship into a company?

The IEC is tied to the PAN, so it cannot be transferred. The new company applies for its own IEC against its own PAN, and the old one should be surrendered. Consignments in transit across the transition need particular care, because the importer of record changes.

Is an IEC needed for import of goods for personal use?

No. Individuals importing or exporting goods for personal use unconnected with trade, manufacture or agriculture are exempt, as are central and state government departments. Everything commercial requires one.