Thinking about selling your beautiful handcrafted goods to a customer in New York? Or perhaps importing specialised equipment to scale up your manufacturing? Taking your business global is an exciting step, but it comes with its own set of rules. The very first key you’ll need to unlock this international door is the Import Export Code, or IEC. Without it, your journey into global trade can’t begin.
This guide is designed to be your simple, straightforward companion through the online IEC application process. We’ll walk you through what it is, why you need it, and exactly how to get it without any fuss. Let’s get you ready to trade with the world.
Key Takeaways
For those in a hurry, here’s a quick summary of what you need to know:
- What is it? An IEC is a unique 10-digit code issued by the Directorate General of Foreign Trade (DGFT) that acts as a license for import and export.
- Is it mandatory? Yes, it is essential for any business or individual looking to engage in international trade from India.
- Validity: It has lifetime validity and does not require any renewal.
- Application Fee: The government fee for a new application is a flat ₹500.
- Key Requirement: A valid PAN card is mandatory for the application.
What is an IEC Code?
The Import Export Code (IEC) is a unique 10-digit identification number issued by the Directorate General of Foreign Trade (DGFT), which falls under the Ministry of Commerce and Industry. Think of it as the PAN card for international trade. It’s a primary requirement for any business or individual to legally import goods into India or export products and services from India.
One of the best things about the IEC is its simplicity. Once you get it, it’s valid for the entire lifespan of your business. There are no tedious renewals or compliance filings associated with it, letting you focus on what truly matters: growing your business globally.
Why Do You Need an IEC Code?
Imagine you are a small business owner from Jaipur who sells hand-printed textiles. You’ve just received a large order from a boutique in London. Here’s why an IEC code is non-negotiable for you:
- It’s the Law: First and foremost, it is a legal necessity. You cannot conduct import or export activities without a valid IEC.
- Customs Clearance: When your shipment of textiles reaches the port, the customs authorities will require your IEC to clear the goods. Without it, your package will be stuck, leading to delays and potential losses.
- Receiving International Payments: The bank in London needs to transfer your payment. Indian banks require an IEC to process incoming payments in foreign currency for export transactions. It legitimises the transfer.
- Access to Government Benefits: The Indian government offers numerous incentives, subsidies, and schemes to promote exports. To claim benefits like GST refunds or subsidies from the Export Promotion Council, having an IEC is mandatory.
Eligibility for Applying for an IEC
The good news is that the eligibility criteria are quite broad. Almost any business entity or individual can apply for an IEC. This includes:
- Individuals and Proprietorship firms
- Partnership firms
- Limited Liability Partnerships (LLPs)
- Private and Public Limited Companies
- Trusts and Societies
- Hindu Undivided Families (HUFs)
The one key requirement for all applicants is a valid Permanent Account Number (PAN).
It’s important to note that an IEC is not required if you are importing or exporting goods for personal use and not for any commercial trade or business purpose.
Documents Required for IEC Application
To ensure your application process is smooth, it’s best to keep digital copies of the following documents ready:
- PAN Card: A clear copy of the PAN card of the individual or the business entity.
- Proof of Identity: Aadhaar card, Voter ID, or Passport of the applicant (in case of a proprietorship).
- Proof of Business Address: Any one of the following—a recent utility bill (electricity or telephone), a rent agreement, or a sale/lease deed. If the premises are not in your name, a No Objection Certificate (NOC) from the property owner is needed.
- Bank Details: A cancelled cheque of the business’s current bank account or a bank certificate.
- Photograph: A digital passport-sized photograph of the applicant.
Step-by-Step Process to Apply for IEC Code Online
The entire process is digital and can be completed on the DGFT portal. Here’s a simple breakdown of the steps involved.
Step 1 – Visit the DGFT Website
Navigate to the official DGFT portal at dgft.gov.in.
Step 2 – Register and Login
On the homepage, find the ‘Services’ tab and select ‘IEC Profile Management’. You’ll need to register as a new user (‘importer/exporter’) using your PAN, email address, and mobile number. After verifying the OTP, you will receive a temporary password. Log in and change your password.
Step 3 – Fill the IEC Application Form (ANF 2A)
Once logged in, click on “Apply for IEC” on your dashboard and start a fresh application. You will need to fill in basic details about your business, including proprietor/director details, bank information, and other general information.
Step 4 – Upload Required Documents
In this step, you will be prompted to upload scanned copies of the documents we listed earlier (PAN card, address proof, cancelled cheque, etc.).
Step 5 – Pay the Application Fee
The application fee is ₹500. You will be redirected to the Bharatkosh payment gateway to complete the payment via net banking, debit/credit card, or UPI. Make sure to download the payment receipt for your records.
Step 6 – Submit and Receive Your IEC Certificate
After successful payment, the final step is to sign the application using an Aadhaar-based OTP or a Digital Signature Certificate (DSC). Once submitted, the DGFT department will verify your application. If everything is in order, your e-IEC certificate will be generated and sent to your registered email address. You can also download it from the DGFT portal.
Fees & Processing Time
| Component | Details |
| Government Fee | ₹500 for a new application. |
| Processing Time | Typically 1–3 working days if all documents and details are correct. |
| Certificate Delivery | The IEC certificate is issued electronically and sent to your email. |
Pro-Tip: Common Mistakes to Avoid During IEC Application
To get your IEC without any rejections or delays, steer clear of these common errors:
- PAN Mismatches: Ensure the name and details on the PAN card perfectly match the details you enter in the application.
- Unclear Documents: Upload high-quality, legible scans of your documents. A blurry address proof is a common reason for rejection.
- Incorrect Bank Details: Double-check your account number and IFSC code on the cancelled cheque. This is crucial for linking your bank for foreign transactions.
- Wrong Address Information: The address on your proof must match the one entered in the application form.
Benefits of Having an IEC Code
Getting your IEC is more than just a formality. It unlocks several advantages for your business:
- Gateway to Global Markets: It is your primary license to legally operate in the international market, expanding your customer base beyond India.
- Avail Export Incentives: An IEC makes you eligible for various government schemes, subsidies, and benefits designed to boost exports.
- Hassle-Free Transactions: It ensures smooth customs clearance and allows banks to process your international payments without any legal hurdles.
- Builds Credibility: Having an IEC adds a layer of credibility to your business, marking you as a verified and legitimate player in the international trade ecosystem.
You’ve Got Your IEC. Now, Get Paid with Ease.
Now that you know how to get your IEC, you’re officially ready to take your business global. But once you clear customs and your products are delivered, the most important step is getting paid by your international client.
Traditional wire transfers can be slow and complex. A modern payment platform like Razorpay International is designed to make this final step simple and compliant.
Here’s how it helps:
- Receive Global Payments Easily: Don’t worry about SWIFT codes or high bank fees. Get a simple payment link you can share with your clients to accept payments in 100+ currencies.
- Automated Compliance & Documentation: Just like your IEC, getting paid requires compliance. We help you with purpose codes and automatically generate e-FIRAs (e-FIRC), the essential documents for proving your export income.
- All-in-One Dashboard: Manage your invoices, track your international payments, and access all your records from one place. It’s the simplest way to manage your new export business.
Simplify International Payments with Razorpay
Ready to complete your export toolkit and start getting paid from anywhere in the world?
Frequently Asked Questions (FAQs)
Q1: How long is an IEC code valid?
An IEC code has lifetime validity. You do not need to renew it. However, you must update your IEC details on the DGFT portal annually between April and June to keep it active.
Q2: Can I apply for an IEC without having GST registration?
Yes, you can. While GST registration is separate, a recent government circular states that for traders registered under GST, their PAN will be considered their new IEC. However, if you are not registered under GST, you can still apply for and get a separate IEC.
Q3: Is an IEC mandatory for service exporters?
Yes. An IEC is required for exporting both goods and services from India to receive payments and avail of government benefits.
Q4: How can I check my IEC status online?
You can check the status of your application or the validity of your existing IEC by logging into the DGFT portal and navigating to the ‘IEC Profile Management’ section.
Q5: Can an individual without a registered company apply for an IEC?
Absolutely. An individual can apply for an IEC in their own name as a proprietorship, using their personal PAN card.
