What is Import Export Code (IEC Code)?

The Import Export Code (IEC) is a unique 10-digit identification number issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, Government of India. It is mandatory for individuals or businesses involved in the import or export of goods and services from India.

Without an IEC, no person or entity is legally allowed to engage in import or export activities. It serves as a basic business identification for international trade transactions and is used by customs authorities, banks, and other government bodies during shipment clearance and financial dealings related to foreign trade.

When will there be requirement of IE code?

At following instances the IE Code would be required:

• When an importer has to clear his shipments from the customs then it’s needed by the customs authorities.
• When an importer sends money abroad through banks, then it’s needed by the bank.
• When an exporter has to send his shipments, then it’s needed by the customs port.
• When an exporter receives money in foreign currency directly into his bank account then submission of IEC is required by the bank.

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Who can Apply for IEC?

Any individual or business entity planning to engage in import or export activities from India can apply for an IEC. The DGFT has made the application process simple and accessible for all types of traders, regardless of business size or structure. Here’s a list of who is eligible to apply for IEC registration:

• Individuals
• Proprietorship Firms
• Partnership Firms
• Limited Liability Partnerships (LLPs)
• Private Limited Companies and Public Limited Companies
• Trusts, Societies, and HUFs (Hindu Undivided Families)
• Government Undertakings

Eligibility Criteria to Register an Import-Export Code

The Import Export Code (IEC) can be obtained by virtually anyone intending to engage in cross-border trade of goods or services. The Directorate General of Foreign Trade (DGFT) does not impose complex restrictions, making the IEC registration process simple and inclusive. However, certain basic criteria must be met for successful registration. Here are the key eligibility conditions:

• Valid PAN Card: The applicant, whether an individual or entity, must have a valid Permanent Account Number (PAN) issued by the Income Tax Department.
• Business Type: IEC can be obtained by various types of applicants, including individuals, sole proprietorships, partnerships, LLPs, private and public limited companies, trusts, and societies.
• Bank Account in Business Name: The applicant must have an active current bank account in the name of the business or individual, depending on the nature of the entity.
• Registered Office Address: A valid address proof of the business premises or office is required for the application.
• Digital Signature Certificate (DSC) (for companies and LLPs): A Class 2 or Class 3 DSC is mandatory for signing the online application in case of companies, LLPs, and other registered entities.
• Not Engaged in Prohibited Trade: The applicant must not be involved in any import or export activity restricted or prohibited under Indian trade laws or customs regulations.
• No Requirement for Business Incorporation (for individuals): Individuals do not need to have a registered business or GST to apply for IEC, as long as they have a valid PAN and a bank account.
• Must Have Aadhar-Linked Mobile Number (for Individuals/Proprietors): For individual applicants and sole proprietors, the mobile number linked with Aadhar is required during authentication. The DGFT uses Aadhaar-based OTP verification as part of the IEC application process, making it essential for a smooth and quick online registration.