Have you ever wondered how chocolates from Switzerland, mobile phones from China, or perfumes from France come into India? Or how Indian mangoes, spices, and textiles reach people living in the USA, Europe, or Australia? This all happens through Import Export Code.
But to do this business legally, there is something very important that every trader or exporter needs. It is called the Import Export Code (IEC). In this guide, we will explain it in very easy words.
What is an Import Export Code (IEC)?
- IEC is a 10-digit number given by the Director General of Foreign Trade (DGFT), under the Government of India.
- It works like an identity card for global trade. Just like students have roll numbers in school, businesses need IEC for trading internationally.
- Without IEC, nobody can import goods into India or export products from India (unless they fall into a very small exempted category).
- Banks, customs officers, and the Government use this code to check all international transactions done by your business.
Who Needs an Import Export Code?
IEC is not for everyone. It is only for people and businesses who want to do trade across countries.
Those who need Import Export Code:
- An individual, company, partnership firm, LLP, or sole proprietor who is importing or exporting.
- Traders who want to get government benefits from export policies.
- Those who do not need IEC:
- Government departments.
- Notified charitable institutions.
- People importing or exporting items only for personal purpose (not for business).
Why is Import Export Code Important?
- IEC is very important for anyone doing foreign trade because:
- Without it, customs will not clear shipments at ports or airports.
- It helps in opening bank accounts for foreign currency payments.
- With IEC, you can claim export benefits from the Indian government.
- It helps the government keep a trade history record of your business.
- It makes sure you follow India’s foreign trade policy properly.
How to Apply for Import Export Code in 2025
Applying for IEC in 2025 is simple because the whole process is online.
1: Prepare Documents
You will need:
- PAN card.
- Address proof (electric bill, rent agreement or property paper).
- Bank certificate or cancelled cheque.
- Aadhaar card, passport, or voter ID (for individual).
- Business registration proof if you own a company.
2: Create an Account on DGFT Website
- Visit www.dgft.gov.in.
- Register with PAN, email, and mobile number.
3: Fill Application Form (ANF-2A)
- Provide all details like business name, address, and bank account.
- Upload the scanned documents.
4: Pay Application Fee
- Pay ₹500 online (plus taxes).
5: Submit Application
- After submission, DGFT checks your form.
- Usually, approval is given in 1–3 working days.
6: Download Certificate
- The DGFT will email your IEC certificate.
- You can also download it from portal.
2025 Updates and Rules
- The rules have become stricter to make trade more transparent.
- Aadhaar-based e-KYC is compulsory.
- Annual update (April–June every year) is mandatory.
- If you don’t update, your IEC becomes inactive.
- IEC is now linked with your PAN and GST for better checking.
- Lifetime validity – once you register, IEC never expires, but yearly confirmation is a must.
Annual Renewal (Profile Update)
IEC never expires, but to keep it active you must confirm/update yearly.
Steps:
- Login on DGFT portal.
- Go to IEC Profile Management.
- Confirm or update details.
- Submit (zero fee).
- If you forget → IEC will be deactivated, shipments stuck, and financial loss may occur.
Challenges in Import Export Code Application
Some common problems are:
- Incomplete documents – scan properly and upload.
- Mismatch in GST and PAN – details must match.
- Forgetting annual update – put reminder alarms.
- Aadhaar OTP issues – ensure mobile number linked with Aadhaar.
- Complex business cases – take expert help.
Benefits of Import Export Code
IEC gives lots of benefits:
- Access to foreign markets.
- Legally clears goods at custom ports.
- Helps to get export subsidies and incentives.
- Smooth banking transactions.
- Lifetime valid – no renewal fees required.
Role of DGFT
DGFT (Directorate General of Foreign Trade) is the main authority that:
- Issues IEC.
- Creates trade policies.
- Ensures compliance.
- Provides online platforms for easy processes.
Our Platform’s Support
- Giving proper document checklists.
- Providing simple step-by-step guidance.
- Updating about government changes.
- Reminding annual IEC update deadlines.
- Answering common questions.
Case Study:
1 – Jyoti, Exporter from Mumbai
Jyoti makes beautiful cotton garments. She wanted to sell them abroad. She prepared her PAN, Aadhaar, and bank documents. Applied online, did Aadhaar OTP, and got IEC in 3 days. Now, she exports her products easily and also gets government subsidies.
2 – Arun, Importer from Delhi
Arun runs a small electronics store in Delhi. He wanted to import gadgets from Singapore. At first, customs did not allow him because he did not have IEC. Later, he applied online, got his IEC, and then imported products legally. Today, his business has grown and he even pays suppliers abroad through international bank accounts linked to IEC.
Frequently Asked Questions (FAQ)
Q1. Is Import Export Code the same as GST?
No. IEC is for international trade, GST is for domestic tax. But they are linked.
Q2. Can I do export without Import Export Code?
No, unless exempted (like small gifts or personal use).
Q3. Do I need to renew the Import Export Code every year?
Not renew, but update your profile between April 1 – June 30 yearly.
Q4. How long does it take to get Import Export Code?
Usually 1–3 working days.
Q5. What if I don’t update Import Export Code yearly?
Your IEC will be deactivated automatically.
Q6. Does Import Export Code cost a lot of money?
No. The government fee is only ₹500.
Q7. Can students or individuals apply for Import Export Code?
Yes, even individuals can apply if they want to trade internationally.
Conclusion
The Import Export Code (IEC) is like a global identity card for Indian businesses that want to sell or buy goods across borders. Without it, no import or export can happen legally.
The process of getting IEC is very easy now, you can get it for DGFT portal which is completely online so, no need to go to anywhere for IEC. All you need is documents required (PAN, AadhaR, & Bank Details) and pay the nominal charges and you’ll get your IEC in few days. Once you have it, you can use it for a lifetime.
But remember – the government now wants you to update or confirm IEC details every year between April and June. If you forget, your IEC will stop working, and that can lead to shipment delays or money loss.
Just like Jyoti in Mumbai and Arun in Delhi, you can also start global trade and make profits. The best part is that the government also supports exporters through benefits and schemes once they have IEC.
So, if you also want to make your company global, IEC is the key for it.