IEC: what it is, who needs one, how to apply on DGFT

An IEC is the 10-character number that identifies your business in foreign trade. DGFT issues it. Since GST, it is the same as your business's PAN, but it is not automatic: you still have to apply for it on the DGFT website.

Under the Foreign Trade Policy, no one may import or export goods without an IEC unless they are specifically exempted. One PAN gets one IEC, and that IEC covers all your branches, units and factories. It has no expiry date: it stays valid unless it is suspended or cancelled, or deactivated because you missed an update.

• Every business that imports or exports goods, whether it is a proprietorship, partnership, LLP, company, trust, HUF or society.
• A services exporter, only if it wants benefits under the Foreign Trade Policy.
• Not needed: a person importing or exporting goods for personal use, not connected with trade, manufacture or agriculture.
• Not needed: ministries and departments of the central and state governments.
• Not needed: small border trade with Nepal, Bhutan, or Myanmar through its border areas, up to ₹25,000 CIF value per consignment, and some trade with China through named border passes, with their own limits.

Exempt importers and exporters quote a permanent IEC that DGFT publishes for their category, in para 2.07 of the Handbook of Procedures. Read that list before you assume you are exempt.

1. 1Get ready: the business's PAN, a bank account in the business's name, and a valid address. Keep a cancelled cheque with the business's name printed on it, or a bank certificate, and proof of address. The portal asks for scans unless it can check them online.
2. 2Register on dgft.gov.in and fill in the IEC application, form ANF-2A.
3. 3Pay the application fee online. Appendix 2K of the Handbook of Procedures sets it; it was ₹500 when we checked.
4. 4The IEC is generated automatically. DGFT tells you by email and SMS, and you can download the e-IEC from your DGFT dashboard.
5. 5DGFT may verify your address afterwards by sending post to it, so make sure mail reaches that address.

The Foreign Trade Policy asks every IEC holder to update its IEC details online every year, between April and June. If nothing has changed, you still confirm that online. The update in that window is free; Appendix 2K charges a fee for updating after it.

A change cannot wait for June. If your address, bank account, constitution or other main details change, update the IEC online within 30 days.

• On ICEGATE, an IEC holder registers as the main user and can add employees as its own users. Your CHA registers separately, as a customs broker.
• Customs knows you by your IEC: your bills of entry and shipping bills are filed under it, and DGFT sends IEC changes to the customs system.
• Your bank asks for it too, for example in the declaration you sign when you send export documents through the bank.
• Anyone can look up an IEC's details on the DGFT website, under View IEC Related Details. Check yours there after every update.