IEC — Import Export Code Registration

Yes. Under Section 7 of the Foreign Trade (Development and Regulation) Act 1992 read with Para 2.05 of the Foreign Trade Policy 2023, no person may export or import goods or services without a valid Importer Exporter Code (IEC) unless specifically exempted. The IEC is a 10-digit PAN-linked number issued by the Directorate General of Foreign Trade (DGFT). Exemptions under Para 2.07 are narrow — they cover personal baggage, defence imports, and a few government categories — and do not apply to regular commercial trade. Shipping without an IEC exposes the firm to seizure of goods and penalties under Section 11 of the FT(D&R) Act 1992.

No. An IEC is entity-level, not establishment-level. Under Para 2.05 of the Foreign Trade Policy 2023, one IEC is issued per PAN, regardless of how many GST registrations or branch offices the entity holds. All import-export transactions of the entity, across all states, are conducted under that single IEC. If your firm has restructured and a new legal entity (different PAN) is carrying on the trade, a fresh IEC application must be filed on the DGFT portal under the Foreign Trade (Regulation) Rules 1993.

Service exporters are generally exempt from mandatory IEC under Para 2.07(c) of the Foreign Trade Policy 2023, provided no foreign exchange remittance is involved beyond what is permitted under FEMA. However, if you intend to receive foreign remittances through banking channels and wish to claim benefits under the RoDTEP scheme or the SEIS/export-linked MEIS successor schemes, having an IEC is a practical prerequisite. Additionally, banks facilitating outward or inward foreign currency payments frequently ask for an IEC as part of KYC under FEMA Notification No. 14(R)/2016. We recommend obtaining IEC even for service exporters to avoid delays in banking.

Under Para 2.10 of the Foreign Trade Policy 2023, the IEC holder is required to update their profile on the DGFT portal annually between April 1 and June 30 each year. Failure to update renders the IEC inactive. An inactive IEC will be rejected by customs at the time of shipment clearance and by banks processing foreign remittances. Additionally, if directorial or address changes are not reflected, the IEC profile falls out of sync with the MCA master data and GST records, which can trigger scrutiny during FEMA compliance checks. Updating is done electronically on the DGFT portal and does not require a fresh fee if the legal entity has not changed.

No. An IEC is issued to a specific legal entity identified by its PAN. On conversion from proprietorship to a private limited company, the company acquires a fresh PAN under the Income-tax Act 1961, making the old IEC invalid for the new entity. A fresh IEC application must be filed under the Foreign Trade (Regulation) Rules 1993 in the name of the private limited company. Customs declarations and bank remittances must quote the new IEC from the effective date of conversion. Using the old proprietorship IEC post-conversion is treated as a violation under Section 11 of the Foreign Trade (Development and Regulation) Act 1992 and can attract penalties.