Import Export Code (IEC) Guide for First-Time Exporters

If you plan to export or import goods from India for the first time, the first registration to get is the Importer-Exporter Code (IEC), a 10-character code issued by the Directorate General of Foreign Trade (DGFT) and linked to your PAN. It is a one-time application on the DGFT portal with a government fee of Rs 500, it has no expiry date, but it must be updated every year between April and June or it can be deactivated. This guide walks a first-time exporter through the decisions around the IEC, and the other registrations that sit next to it.

The legal basis is the Foreign Trade (Development and Regulation) Act, 1992, Foreign Trade Policy 2023 (paragraph 2.05) and the Handbook of Procedures. The step-by-step application details are on our import export code registration page; this guide is about the choices and the order of work.

Do you actually need an IEC?

In general, a person or business that imports or exports goods needs an IEC, and customs, banks and shipping lines check it. Importing or exporting without a valid IEC contravenes the 1992 Act and the Foreign Trade Policy and can lead to action by DGFT and customs, as well as trouble clearing goods. Some categories are exempt from the requirement under the policy, and a few are specific to personal or government use. Check the exemption paragraph of the Handbook of Procedures for your case rather than assuming you are exempt.

Questions to answer before applying:

• Are you exporting goods, services, or both? Goods exporters should assume they need an IEC; ask your bank and customs broker how your service exports are treated.
• Are you a proprietorship, partnership, LLP or company? The IEC is issued against the PAN of the entity, so a company needs its own IEC and cannot inherit a proprietor's.
• Do you already hold an IEC under the same PAN? Only one IEC per PAN is possible. Retrieve the existing one instead of applying again.

What the IEC costs and how long it lasts

These figures come from the DGFT user-charge schedule in the Handbook of Procedures as reproduced in secondary sources, and the DGFT portal shows the live amount when you pay. Under paragraph 2.05(d) and (e) of the Foreign Trade Policy 2023, the holder must update details every year between April and June, and an IEC that is not updated is deactivated. DGFT began a large-scale deactivation exercise in September 2025, so do not assume a dormant code is still active.

Documents and details to keep ready

The portal verifies PAN and bank data, so clean documents matter more than speed.

• PAN of the entity, with the name exactly as on the PAN record.
• Aadhaar or other identity details of the proprietor, partner, director or authorised signatory, used for OTP or signing.
• Registered address proof, such as a rent agreement with a utility bill, or the ownership document.
• Bank account details with a cancelled cheque or bank certificate showing the account holder name and IFSC.
• Email and mobile number that the business controls, because the annual update and modifications need OTP on them.
• For companies and LLPs, a valid digital signature certificate where the portal asks for it; confirm on the portal for your constitution type.

Step-by-step: from zero to first shipment

1. Set up the entity and bank account. Choose the structure, such as a private limited company, and open a current account that can handle foreign exchange. The account holder name must match the PAN.
2. Register for GST. Exports are generally zero-rated but you need GST registration to claim refunds or supply under a Letter of Undertaking (LUT). Check how this works for your product with your adviser.
3. Apply for the IEC on the DGFT portal under IEC profile management, pay Rs 500 and download the certificate.
4. Register on ICEGATE and share the IEC with your customs broker so that filings use the right details. See ICEGATE registration.
5. Link your bank details on the IEC and with the customs systems so that export proceeds and incentives are credited correctly.
6. Get product-specific registrations where your goods need them: for example APEDA registration for scheduled agricultural and processed food products, Spices Board registration for spices, or other regulators depending on the product.
7. Join an export promotion council and obtain RCMC if you want scheme benefits. See RCMC registration.
8. Prepare the first shipment documents: commercial invoice, packing list, shipping bill through the customs broker, certificate of origin where the buyer requires it, and bank realisation records.

What sits next to the IEC

Deciding whether to apply now or later

First-time exporters often ask whether to apply for the IEC before or after the first buyer confirms the order. A sensible rule is to apply as soon as you have a serious enquiry and a registered entity, because the IEC is needed to open export-linked banking processes, to register on ICEGATE and to engage a customs broker. The Rs 500 fee is small compared with the cost of delaying a first shipment.

Consider these points while you decide:

• Entity first. If you plan to move from proprietorship to a company within months, apply under the company's PAN once it exists. An IEC taken under the proprietor's PAN cannot simply be carried across.
• Product first. If your product needs a regulator registration, start that in parallel, since it can take longer than the IEC.
• Buyer terms. Confirm payment method, currency and incoterms with the bank before the invoice is raised, so that the realisation paperwork matches the shipping bill.
• Records. Open a folder for each shipment on day one and keep the invoice, packing list, shipping bill, bill of lading or airway bill and bank realisation advice together.

First-time exporter mistakes

• Skipping the annual update. Many people think a code with no expiry date stays valid. It is deactivated if you miss the April to June update.
• Mismatched PAN, name or bank details. The portal validates them. Abbreviations such as "Pvt" or "Ltd" on a cheque are a repeat cause of rejection.
• Applying twice on the same PAN. Only one IEC per PAN is allowed.
• Wrong constitution type or signatory. Choosing proprietorship for a company, or a signatory without authority, can invalidate the application.
• Using an inherited code. If a proprietorship or partnership has become a company, the company has a different PAN and needs its own IEC.
• Not updating after a change. If your address or bank changes and the IEC is not modified, customs and bank filings fail and refunds are delayed.
• Control of the login. Keep the email and mobile on the DGFT account with the business, not a consultant or an employee who may leave.

After you have the IEC

• Update the IEC every April to June, ideally on 1 April.
• Keep invoices, shipping documents and foreign exchange realisation proofs.
• Use the IEC on all commercial documents and shipping bills as required.
• File GST returns, with LUT where applicable, and keep the data consistent with your customs filings. If you need a reference for monthly dates, see our guide to GST return due dates and late fees.
• Check on ICEGATE that your IEC shows as active before the first shipment of the year.

When to get help

Exporting is a team effort between you, your bank, your customs broker and the regulator, so agree who owns each document before the first order arrives. A short review is useful when you are converting a proprietorship to a company, restoring a deactivated IEC, exporting regulated goods, or when your PAN, bank and GST details do not match. We do not promise approval times, because DGFT issues the code after verification; the portal usually issues it digitally within a few working days of a complete application.

Reviewed by Satyam Gupta, Company Secretary (CS) & Advocate

8+ years of industry experience. Last reviewed 16 October 2026. Always confirm current rules and fees on the official portal before acting.