Import Export Code (IEC): DGFT Registration & Annual Update (2026)
Quick Answer
The Import Export Code (IEC) is a 10-digit code issued by the Directorate General of Foreign Trade (DGFT) under Section 7 of the Foreign Trade (Development and Regulation) Act, 1992. IEC is mandatory for every person importing or exporting goods and services from India (with limited exemptions). The IEC number is the same as the entity’s PAN number (since the DGFT’s BIN-to-IEC migration in 2014). Application is filed online through the DGFT portal at a government fee of Rs 500. Processing time: 1-3 working days. Critical compliance: Every IEC holder must file an Annual Update (formerly known as ANF 2A updation) between April and June each year — failure to update results in IEC deactivation. At Virtual Auditor, we handle IEC registration and annual compliance for Rs 2,999 all-inclusive.
Definition — Importer-Exporter Code (IEC): Under Section 7 of the Foreign Trade (Development and Regulation) Act, 1992, no person shall make any import or export except under an IEC number granted by the DGFT or the officer authorised by the Director General. The IEC is a permanent code — it does not expire and does not require renewal (unlike the earlier system). However, the Foreign Trade Policy 2023 introduced a mandatory annual updation requirement to keep the IEC active. The IEC number is identical to the PAN of the entity (for entities) or individual (for sole proprietors).
Who Needs an IEC
Mandatory Requirement
Under the Foreign Trade Policy 2023 (FTP 2023) and the Hand Book of Procedures (HBP), IEC is mandatory for:
- Any person importing goods into India for commercial purposes
- Any person exporting goods from India
- Service exporters claiming benefits under the Services Exports from India Scheme (SEIS) — although SEIS has been discontinued under FTP 2023, IEC remains relevant for export incentive schemes
- Any person availing benefits under the Foreign Trade Policy (MEIS, RoDTEP, Advance Authorisation, EPCG, etc.)
Exemptions from IEC Requirement
IEC is NOT required for:
- Central Government, State Government, or persons notified by the Central Government for import/export on their behalf
- Import or export for personal use (not connected with trade, manufacture, or agriculture)
- Import or export by persons/entities specifically exempted under the Foreign Trade (Exemption from Application of Rules in Certain Cases) Order
- Import/export of goods from/to Nepal and Myanmar through Indo-Myanmar border areas, subject to value limits specified in the FTP
IEC Registration Process — Step-by-Step
Step 1: Prerequisites
- PAN: PAN of the entity (for companies/LLPs) or individual (for proprietorships). The IEC number will be the same as the PAN.
- Aadhaar: Aadhaar of the applicant or the authorised signatory
- Bank account: Current account in the name of the entity with the bank’s pre-printed cancelled cheque
- Digital Signature Certificate (DSC): Class 2 or Class 3 DSC of the authorised signatory (for companies/LLPs). Aadhaar-based e-sign is also accepted.
- Certificate of incorporation: For companies (from MCA) or LLPs (from ROC)
- Address proof of the registered office
Step 2: Access the DGFT Portal
Navigate to the DGFT portal. Register as a new user or log in with existing credentials. The portal uses Aadhaar-based authentication for user verification.
Step 3: File Application (ANF 2A)
File the IEC application in Aayaat Niryaat Form 2A (ANF 2A) online. Key details required:
- PAN of the entity/individual
- Name and address of the applicant as per PAN records
- Type of entity: Proprietorship, Partnership, LLP, Pvt Ltd, Public Ltd, Trust, HUF, Society
- Bank account details: Account number, IFSC code, bank name and branch
- Nature of business: Manufacturer, Trader, Service Provider, Merchant Exporter, Manufacturer-Exporter
- Authorised signatory details
- Branch offices (if any) with separate addresses
Step 4: Upload Documents
- PAN card of the entity
- Aadhaar card of the applicant/authorised signatory
- Certificate of incorporation (for companies/LLPs)
- Partnership deed (for partnership firms)
- Cancelled cheque or bank certificate with pre-printed account details
- Address proof of the registered office (utility bill, rent agreement, or ownership deed)
- Photograph of the applicant/authorised signatory
Step 5: Pay Government Fee
The government fee for IEC registration is Rs 500, payable online through the DGFT portal (net banking, UPI, or debit/credit card).
Step 6: IEC Allotment
Upon successful verification, the IEC is allotted within 1-3 working days. The IEC certificate is generated electronically on the DGFT portal. The IEC number is the entity’s PAN number.
Practitioner Insight — CA V. Viswanathan, IBBI/RV/03/2019/12333
The most common issue we encounter at Virtual Auditor is PAN-IEC mismatch cases. Since the IEC is now linked to PAN, any change in the entity’s PAN details (name correction, address update) must also be reflected on the DGFT portal through the IEC modification process. A Private Limited Company that changes its registered office address with MCA but does not update the IEC on the DGFT portal faces customs clearance delays — the shipping bill address does not match the IEC address. We maintain a compliance tracker that flags IEC updation whenever there is a corresponding MCA or Income Tax change.
Mandatory Annual Update — IEC Updation
What Is the Annual Update
The Foreign Trade Policy 2023, read with the Handbook of Procedures, mandates that every IEC holder must update its IEC details on the DGFT portal between April and June of each financial year. This is referred to as the “IEC Updation” or “Annual Update.”
What Must Be Updated
Even if there are no changes, the IEC holder must log in, review, and confirm the following details:
- Entity name and address
- PAN and GSTIN details
- Bank account details
- Authorised signatory details
- Branch office details
- Nature of business
Consequences of Non-Update
IEC deactivation: If the IEC is not updated between April and June, the DGFT deactivates the IEC automatically. A deactivated IEC cannot be used for:
- Filing shipping bills for exports
- Filing bills of entry for imports
- Availing any FTP benefits (RoDTEP, Advance Authorisation, EPCG, etc.)
- Filing applications on the DGFT portal
Reactivation: A deactivated IEC can be reactivated by completing the annual update on the DGFT portal. The reactivation is typically processed within 1-2 working days. There is no penalty for late update, but the IEC remains deactivated until the update is completed — meaning no import/export transactions can be processed during the deactivation period.
IEC for Service Exporters
Service exporters (IT services, BPO, consulting, design services) need IEC if they wish to:
- Avail benefits under any Foreign Trade Policy scheme
- Claim refunds or incentives linked to export of services
- File applications on the DGFT portal
However, service exporters receiving payments in foreign exchange through normal banking channels do not strictly require IEC for receiving the payments. The RBI’s Foreign Exchange Management (Current Account Transactions) Rules permit receipt of foreign exchange for services rendered without IEC. The IEC becomes relevant when claiming specific FTP benefits.
IEC and GST — Integration Points
The IEC is linked to the entity’s GSTIN on the GST portal. Key integration points:
- Shipping bills: The GSTIN and IEC (which is the PAN) must match on shipping bills filed with Customs. Mismatch leads to Let Export Order (LEO) rejection.
- IGST refund on exports: Exporters claiming IGST refund on exports under Section 16 of the IGST Act must have a valid IEC. The refund is processed through the ICEGATE system which validates IEC-GSTIN linkage.
- Letter of Undertaking (LUT): Exporters opting for export without payment of IGST under LUT must have a valid IEC.
- RoDTEP: Remission of Duties and Taxes on Exported Products (RoDTEP) benefits are credited to the exporter’s IEC account on the DGFT portal.
IEC Modification and Surrender
Modification
Any change in IEC details — address, bank account, addition/removal of branch, change of authorised signatory — must be updated on the DGFT portal through the modification process. The modification application is free of cost and processed within 1-3 working days.
Surrender
An IEC holder who no longer engages in import/export activities can surrender the IEC on the DGFT portal. Upon surrender, the IEC is deactivated permanently. If the entity wishes to resume import/export activities in the future, a fresh IEC application must be filed.
IEC for New Entities
For a newly incorporated Private Limited Company or LLP planning to engage in import/export, the IEC should be obtained immediately after incorporation, along with GST registration. The IEC application can be filed as soon as the PAN is allotted and the bank account is opened.
Practitioner Insight — CA V. Viswanathan, IBBI/RV/03/2019/12333
We frequently see at Virtual Auditor that startups obtain IEC during incorporation but forget the annual updation. The IEC gets deactivated in July, and the startup discovers this only when a shipment is stuck at customs or when a shipping bill is rejected on ICEGATE. We add the IEC annual update (April-June window) to every client’s compliance calendar as a non-negotiable item. The update itself takes 10 minutes on the DGFT portal, but missing it can halt export operations entirely. For clients on our annual compliance plans, we handle the IEC updation automatically each April.
Foreign Trade Policy 2023 — Key Provisions Affecting IEC Holders
RoDTEP (Remission of Duties and Taxes on Exported Products)
RoDTEP, notified under Section 3 of the Foreign Trade (Development and Regulation) Act, replaced the earlier MEIS scheme. RoDTEP provides remission of Central, State, and local taxes/duties that are not refunded through other mechanisms (like GST input tax credit). The benefit is credited as duty credit scrips to the IEC holder’s account on the DGFT portal.
Advance Authorisation
Under Chapter 4 of FTP 2023, Advance Authorisation allows import of inputs (raw materials, components, consumables) for export production without payment of Basic Customs Duty, IGST, and Compensation Cess. A valid IEC is mandatory for applying for Advance Authorisation.
EPCG (Export Promotion Capital Goods) Scheme
The EPCG scheme allows import of capital goods for pre-production, production, and post-production at zero customs duty, subject to an export obligation of 6 times the duty saved within 6 years. IEC is mandatory for availing the EPCG scheme.
Deemed Exports
Under Chapter 7 of FTP 2023, certain categories of supplies within India (supply to EOU/STP/EHTP units, supply against Advance Authorisation) are treated as “deemed exports.” IEC is required for the supplier to claim deemed export benefits.
Summary — Key Takeaways
- IEC is a 10-digit code (same as PAN) issued by DGFT under the Foreign Trade (D&R) Act, 1992 — mandatory for all importers and exporters
- Application filed online through the DGFT portal (ANF 2A) at a government fee of Rs 500; processed in 1-3 working days
- IEC is permanent — no expiry, no renewal. But mandatory annual updation between April-June is required to keep it active
- Non-updation results in automatic deactivation — no import/export transactions can be processed until reactivated
- IEC-GSTIN-PAN linkage is critical for shipping bills, IGST refund on exports, and FTP scheme benefits
- Service exporters need IEC only for claiming FTP scheme benefits, not for receiving foreign exchange payments
- FTP 2023 benefits (RoDTEP, Advance Authorisation, EPCG) all require a valid and active IEC
Frequently Asked Questions
1. Is IEC required for exporting services (IT, consulting, etc.)?
IEC is not strictly required for receiving foreign exchange payments for services exported. The RBI permits receipt of service export proceeds through normal banking channels without IEC. However, if the service exporter wishes to avail any FTP benefits or file applications on the DGFT portal, IEC is mandatory. We recommend obtaining IEC at the time of incorporation itself — the cost is only Rs 500 and the process takes 1-3 days.
2. Can a sole proprietor obtain an IEC?
Yes. Any person — individual, sole proprietor, partnership firm, LLP, Private Limited Company, public company, trust, HUF, or society — can obtain an IEC. For sole proprietors, the individual’s PAN is used as the IEC number. The proprietor’s Aadhaar and bank account details are required for the application.
3. What happens if I import goods without an IEC?
Importing goods without a valid IEC (where not exempt) is a contravention of Section 7 of the Foreign Trade (D&R) Act, 1992, punishable under Section 11 with penalty up to 5 times the value of goods or services involved, or Rs 5 lakh, whichever is more. Additionally, the goods may be confiscated by Customs under the Customs Act, 1962.
4. How do I reactivate a deactivated IEC?
Log in to the DGFT portal, navigate to the IEC module, and complete the annual update by reviewing and confirming all IEC details. The reactivation is typically processed within 1-2 working days. There is no additional fee or penalty for late updation — the IEC is simply reactivated upon completing the update.
5. Can one entity have multiple IECs?
No. Since IEC is linked to PAN, and each entity has a unique PAN, only one IEC per entity is permitted. If an entity has multiple branches, all branches operate under the same IEC. Branch details can be added to the IEC through the modification process on the DGFT portal.
6. Is IEC required for importing goods for personal use?
No. Imports for personal use, not connected with trade, manufacture, or agriculture, are exempt from the IEC requirement. This includes personal effects, gifts, and samples (within prescribed limits). However, if the import is of a commercial nature (for resale or use in manufacturing), IEC is mandatory regardless of the value.
7. How is IEC linked to Customs ICEGATE?
The IEC is registered on the ICEGATE (Indian Customs Electronic Gateway) portal for filing electronic shipping bills (exports) and bills of entry (imports). The Customs Broker (CHA) uses the IEC number for filing documents on behalf of the importer/exporter. IEC-PAN-GSTIN data must match across DGFT, ICEGATE, and the GST portal for seamless clearance.
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