Export essentials
Posted on Apr 7, 2025
Let's say you've landed your first export deal — maybe it can be handmade textiles to Europe, or you're about to bring in machinery from China for your factory. You're really pumped now. And then someone asks, "Do you have your IEC code?"
You pause. IEC? Is this some secret trade license?
Take a breath and relax. If you plan to import or export anything from India, this will be your official guide to the Importer Exporter Code—what it is, why you need it, and how to get one without going in circles.
What Is an IEC Code?
IEC stands for Importer Exporter Code — a 10-digit number issued by the Directorate General of Foreign Trade (DGFT) under India's Ministry of Commerce.
Here's what it means for you as a Business:
It's mandatory for any person or business involved in cross-border trade.
It's required for both physical goods and services, like IT, consulting, or design.
You need it to clear customs, receive payments in foreign currency, and link with logistics portals like ICEGATE.
Related Read: How to Start an Export Business in India: Step-by-Step Guide
Now the question arises: do you need an IEC code for your business?
If you're doing any international business from India — even once — you likely need this code.
It applies to:
Freelancers and consultants exporting services or working with foreign clients
D2C sellers on Amazon Global, Etsy, Shopify, etc.
Manufacturers or B2B traders involved in large-scale shipments
Importers bringing in raw materials, components, or consumer goods
Even trusts, HUFs, and government departments (for certain categories)
✔️ According to Amazon Global Selling, IEC is one of the first must-haves before expanding internationally.
From this, it is evident that IEC looks compulsory for your business, but why?
Why Is the IEC Code So Important?
It's more than just a code for your business— it's your gateway to the global market.
Here's why it matters:
Customs Clearance: Without it, your goods get stuck at the border.
Banking Compliance: Banks won't process your international payments without IEC.
Shipment Tracking: It links with ICEGATE to monitor consignment movement.
Government Filings: It's necessary for GST integration and DGFT filings.
And if you're exporting digital services, the code still applies to legally receiving foreign remittances.
Now that we know IEC is really important, how can you apply for it?
How to Apply for an IEC Code in India (Step-by-Step)
The process is completely online for you and doesn't require visiting any office.
Let's see how you can do it:
Visit the official DGFT portal → https://www.dgft.gov.in/CP/
Register your user profile using your PAN + OTP
Upload the necessary documents:
PAN Card (individual or business)
Address proof (utility bill or lease agreement)
Canceled cheque with the account holder's name
Pay the application fee — ₹500 via UPI, net banking, etc.
Get your IEC by email, usually within 24–48 hours.
Now that we know about IEC, let us bring to light some mistakes you should definitely try to avoid :
Common Mistakes to Avoid:
1 .Even though it's a simple process, here's where applicants often can make some mistakes:
2. Entering the wrong type of PAN (individuals must not use a business PAN).
3. Minor typos in the address or bank details that delay approval.
4. Not linking the IEC to the ICEGATE portal for customs access.
5. Forgetting to update the IEC annually, which can lead to deactivation.
Related read: Mastering Export Documentation and Compliance for Indian Businesses
Okay, now, before we sign off, let's see the most asked questions on this here :
Final Thoughts from Infinity – IEC Code Is Your Export Identity
Whether you're shipping jewelry to Dubai, consulting for a firm in London, or importing gadgets from Korea — the IEC Code is your official identity in India's import-export ecosystem.
Without it, you'll have many problems in business. With it, you're officially open to global business expansion at your will.
Want to get paid faster once your exports start rolling?
Infinity helps Indian exporters and freelancers handle international payments smoothly — with real-time FX rates, compliance checks, and RBI-ready reports. Infinity ensures hassle-free international payments without any hidden charges. You can receive your payments at a flat 0.5% transaction fee at live FX rates without any markups. Explore Seamless Global Payments with Infinity.
FAQs About the IEC Code
1.What's the difference between PAN and IEC?
PAN is for domestic taxation. IEC is specific to cross-border trade and is recognized by customs and financial institutions.
2.Is an IEC required for digital service exports?
Yes, especially if you receive foreign payments via SWIFT or platforms like Payoneer or Wise.
3.Does an IEC expire?
No, but you must validate or update your IEC annually on the DGFT portal to avoid suspension.
