Importer Exporter Code (IEC)

The Importer Exporter Code (IEC) is India's business identification number for foreign trade. Paragraph 2.05 of the Foreign Trade Policy 2023 describes it as a 10-character alphanumeric number allotted to an entity and mandatory for any export or import activity. Since GST was introduced, the IEC is the same as the entity's Permanent Account Number (PAN), but DGFT still issues it separately on an online application.

Who needs one

• Goods: no export or import of goods may be made without an IEC unless the person is specifically exempt (FTP 2.05(a))
• Services: an IEC is needed only when the service exporter claims benefits under the Foreign Trade Policy
• Customs: a customs broker filing a bill of entry or shipping bill must verify the client's IEC, GSTIN, identity and working address under regulation 10(n) of the Customs Brokers Licensing Regulations, 2018

How to get one, and the fee

An IEC can be held by a proprietorship, partnership, LLP, company, trust, HUF or society. DGFT asks for a PAN, a bank account in the firm's name and a valid address, which it may verify physically. The application is made online at dgft.gov.in (Handbook of Procedures 2023, paragraph 2.08), and the IEC is generated automatically. Appendix 2K sets the application fee at five hundred rupees. The IEC is valid permanently unless it is suspended or cancelled, it covers all the firm's branches, and only one IEC is issued against a single PAN.

The annual update

Under FTP paragraph 2.05(d), every IEC holder must update its IEC details online each year between April and June, and must confirm them online even when nothing has changed. There is no fee for this annual update (Appendix 2K). An IEC that is not updated in that window is deactivated, and it is reactivated once the update is made (2.05(e)). A deactivated IEC can hold up customs filings, so put the April-June update on the calendar.

Exemptions

Paragraph 2.07 of the Handbook of Procedures exempts, among others, central and state government ministries and departments, people importing or exporting goods for personal use not connected with trade, manufacture or agriculture, and small consignments across the Nepal, Bhutan, Myanmar and specified China border points up to set value limits. Exempt categories use permanent IEC numbers that DGFT lists for them, such as one for personal-use imports and exports.

On Airlift's lanes

On India to USA shipments the Indian exporter needs an active IEC before its shipping bill can be filed. On USA to India shipments the Indian importer needs one for the bill of entry. The US shipper does not need an IEC, but the Indian consignee should confirm theirs is active before the cargo sails.