A complete, practitioner-level guide to IEC registration on the DGFT portal — who needs it, who is exempt, the exact online process, documents, ₹500 fee, linkage with GST and RCMC, and the annual update that deactivates your code if you skip it.
The Importer Exporter Code (IEC) is a 10-digit code issued by the DGFT that is mandatory for anyone importing into or exporting out of India. Since 2017 the IEC is the same as your PAN. Application is fully online on dgft.gov.in, the government fee is ₹500, and approval is usually automatic within 15 minutes to 2 working days. The IEC is valid for life but must be updated (confirmed) on the DGFT portal every year between April and June, or it is deactivated.
Every serious cross-border business in India starts at the same gate. Without an IEC, customs will not clear your shipment, your bank will not process the inward or outward remittance under a trade code, and no export incentive scheme will recognise you. The good news is that IEC is one of the cheapest and fastest registrations in the Indian compliance stack — the problems founders face are almost never in obtaining it, but in the annual update, the AD Code linkage and the GST-IEC mismatch.
The IEC is issued by the Directorate General of Foreign Trade under Section 7 of the Foreign Trade (Development and Regulation) Act, 1992. It is the primary business identification number for foreign trade. Since the DGFT's 2017 trade notice, the IEC number is identical to the PAN of the applicant — one PAN, one IEC, no exceptions. A firm that already had multiple IECs before that change was required to surrender the extras.
| Scenario | IEC required? | Notes |
|---|---|---|
| Importing goods for business | Yes | Customs will not clear without it |
| Exporting goods | Yes | Mandatory on the shipping bill |
| Exporting services and claiming FTP benefits | Yes | Required for SEIS-type benefits and RCMC |
| Exporting services, no FTP benefit claimed | No | Bank may still ask; obtaining it is prudent |
| Freelancer receiving foreign payments for services | Generally no | Software/consulting receipts are usually covered by FIRC/purpose code |
| Import for personal use, not connected to trade | No | Explicit exemption |
| Goods imported/exported by central or state government departments | No | Notified exemption |
| Import/export to or from Nepal, Bhutan, Myanmar through specified LCS up to ₹25,000 | No | Value-limited exemption |
| GST-registered person — PAN used as IEC | Yes, still apply | PAN becomes the IEC only after DGFT issues it |
A common misconception is that because IEC equals PAN, a GST-registered business automatically has an IEC. It does not. The number is the same as your PAN, but the code must still be issued by DGFT before customs recognises it.
Keep the address proof and the bank document in the exact legal name of the entity. DGFT auto-validates the PAN name against the CBDT database; any mismatch in spelling, initials or the use of 'M/s' triggers a query and adds days to what should be a same-day approval.
| Cost head | Amount (₹) | Notes |
|---|---|---|
| DGFT government fee | 500 | Fixed, non-refundable |
| Class 3 DSC (only if not using Aadhaar e-sign) | 1,200 – 2,500 | 2-year validity |
| Professional assistance | 1,000 – 3,000 | Optional |
| Realistic total | 500 – 4,000 | Most proprietors pay only ₹500 |
Your Authorised Dealer (AD) Code is a 14-digit number issued by your bank branch. It must be registered at each port or ICD from which you ship. Without an AD Code registration at that specific port, the shipping bill cannot be generated — this is the single most common reason a first export gets stuck. Obtain the AD Code letter from your bank on their letterhead in the customs-prescribed format, then register it on ICEGATE for the relevant port.
A Registration-cum-Membership Certificate is issued by the relevant Export Promotion Council or Commodity Board and is mandatory to claim most Foreign Trade Policy benefits, including Advance Authorisation and EPCG. Since 2022 RCMC applications are filed through the DGFT common digital platform. Choose the council matching your product — FIEO is the default for products with no dedicated council.
Exports are zero-rated under Section 16 of the IGST Act. You can either export under a Letter of Undertaking without paying IGST and claim a refund of unutilised input tax credit, or pay IGST and claim a refund of the tax paid. The LUT is filed annually in Form GST RFD-11 on the GST portal and must be renewed at the start of each financial year. Ensure the IEC in your GST profile matches the DGFT record — mismatches block ICEGATE-GSTN data transmission and stall IGST refunds.
Since the DGFT notification of 12 February 2021, every IEC holder must electronically update their IEC details every year between April and June, even when nothing has changed. An IEC that is not updated is deactivated, and a deactivated IEC blocks customs clearance and export incentives until it is reactivated.
Reactivation is possible — log in to the DGFT portal and complete the update, and the code is restored without a penalty — but the shipment sitting at the port during that window still costs demurrage. Put a recurring reminder for April every year. We cover the full update workflow in the companion article on IEC annual update and compliance.
| Change | How to do it | Fee |
|---|---|---|
| Address, bank, branch, director change | DGFT portal → IEC Profile Management → Modify IEC, then e-sign | ₹200 approx. |
| Change of entity name after conversion | Modify IEC with the new incorporation certificate | ₹200 approx. |
| Change of PAN (e.g. proprietorship to company) | New IEC required — IEC is PAN-linked and non-transferable | ₹500 |
| Surrender | DGFT portal → Surrender IEC | Nil |
Most applications are auto-approved within 15 minutes of payment if the PAN, Aadhaar and bank details validate cleanly. Where documents need manual scrutiny, it takes 1–3 working days.
It is not strictly required for exporting services where no Foreign Trade Policy benefit is being claimed, because service exports are not routed through customs. It is required if you want an RCMC or FTP benefits, and many banks prefer it on file for large recurring inward remittances.
No. The IEC is valid for the lifetime of the entity. However, the mandatory annual electronic update between April and June keeps it active; skipping it deactivates the code.
Yes. Any individual with a PAN and a bank account can obtain an IEC — a registered firm is not a precondition. This is how most first-time solo exporters start.
No. GST registration is not a prerequisite for the IEC. It becomes relevant when you export goods and want to claim IGST refunds or file a LUT, at which point GST registration is compulsory for inter-state supply of goods.
The IEC identifies you as a trader nationally and is issued by DGFT. The AD Code links your bank branch to a specific customs port and is issued by your bank. You need both: IEC to be recognised as an exporter, and AD Code registered at each port from which you actually ship.
IEC registration itself is a ₹500, same-day formality. The work that determines whether you can actually ship lies around it: an AD Code registered at the correct port, an RCMC if you intend to claim incentives, a LUT so your working capital is not locked in IGST, and the April-to-June annual update that keeps the code alive. Set those four up together and your first export clears without drama.
Senior contributor at Taxpex Consultancy. Reviewed by a practising Chartered Accountant. Published on 22 July 2026 · Updated on 22 July 2026.
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