The IEC Code (Import Export Code) is a 10-digit unique identification number issued by the Director General of Foreign Trade (DGFT), Ministry of Commerce, Government of India. It is a mandatory license for any person or business entity wishing to import or export goods and services to/from India. Without an IEC Code, goods cannot be cleared by customs authorities, and payments cannot be sent or received abroad through banks. In the GST era, the IEC is often the same as the entity’s PAN card number, but it must be formally registered and activated on the DGFT portal.
Understanding what is IEC Code is the first step for any aspiring exporter. It is a lifetime registration (subject to annual updating) and does not require filing separate returns, making it low-maintenance. It acts as the primary license for cross-border trade.
What Does IEC Code Mean
It certifies that the entity is authorized to trade internationally.
Format: Typically the 10-character PAN Number (e.g., ABCDE1234F).
Earlier, it was a separate number, but now PAN serves as the IEC, provided it is registered with DGFT.
Why IEC Code is Important
You need it for:
- Customs Clearance: To clear shipments at the port.
- Bank Transfers: Banks require IEC to process Forex payments for imports/exports.
- Schemes: To avail benefits under schemes like MEIS/SEIS (Export incentives).
Where is IEC Code Used
It is used in:
- Shipping Bills: Mandatory field for exporters.
- Bill of Entry: Mandatory for importers.
- AD Code Registration: Registering with the bank for foreign dealings.
How to Find or Check IEC Code
To verify:
- Visit: dgft.gov.in.
- Services: Go to “View Any IEC.”
- Search: Enter the PAN Number and Captcha.
- Result: It will show the IEC status (Active/Inactive) and entity name.
Example of IEC Code
ABCDE1234F
(Same as PAN)
Common Problems or Errors
Traders face:
- IEC Inactive: Failed to update details annually. Solution: DGFT mandates annual updating (April-June). Log in and confirm details to reactivate.
- Bank Rejection: Name mismatch between Bank and IEC. Solution: Ensure the name on the Cancelled Cheque matches the IEC registration exactly.
Important Things to Remember
- It is not required for personal use (importing goods for personal use).
- It is linked to your MSME Udyam Number for certain incentives.
- Keep your Digital Signature Certificate (DSC) ready for applying/updating.
FAQs
What is full form of IEC?
IEC stands for Import Export Code.
Is IEC code same as PAN?
Yes, currently the IEC code is numerically the same as the firm’s PAN number. However, the PAN must be registered on the DGFT portal to function as an IEC.
Is IEC mandatory for services export?
Yes, if you want to avail benefits under the Service Exports from India Scheme (SEIS), otherwise it is generally required for goods. However, banks may ask for it for large forex inward remittances.
Does IEC expire?
IEC is valid for a lifetime, but you must update the details on the DGFT portal every year between April and June to keep it active.
Who does not need an IEC?
Individuals importing/exporting goods for personal use (not for trade) and government ministries are exempt from obtaining IEC.
Apply at dgft.gov.in.