What is the Importer Exporter Code (IEC) and who needs it in India?

The IEC is a 10-digit business identification number issued by the Directorate General of Foreign Trade (DGFT) that is required for any Indian entity engaged in commercial import or export of goods. Without it, you generally cannot clear customs, open a foreign currency account for trade, or remit money abroad for trade transactions.

Are there any exemptions from the IEC requirement?

Yes, IEC is not required for the export or import of services, for personal non-commercial consignments, for goods sent by post or carried as personal baggage, and for certain other notified categories under the Foreign Trade Policy. However, any business doing regular commercial trade in goods must obtain one.

How can I apply for an IEC online, and how long is it valid?

Applications are submitted on the DGFT online portal by registering, entering the entity's details, uploading KYC documents such as PAN, Aadhaar, a cancelled cheque or bank certificate, and proof of business address, and paying the prescribed fee. Once issued, the IEC is valid for the lifetime of the business and does not require periodic renewal, though any changes in details must be updated on the portal.

IEC (Importer Exporter Code): How to Get One in India

The Importer Exporter Code (IEC) is a 10-character alphanumeric code issued by India’s Directorate General of Foreign Trade (DGFT) that every Indian business needs before it can legally export or import goods, including handicrafts. It is mandatory for almost all cross-border trade in India and is typically the first registration an exporter or importer secures, before even setting up customs procedures. Without an IEC, you cannot clear goods through Indian customs, open foreign currency accounts for trade, or claim benefits under India’s foreign trade policy.

What exactly the IEC is

The IEC (sometimes written as “IE Code”) is a permanent, lifetime identifier assigned to a specific business entity — a proprietorship, partnership, LLP, company, trust, or society. It is linked to the entity’s PAN and is required on almost every document involved in cross-border trade: shipping bills, bills of entry, foreign remittance forms, and bank paperwork for trade finance.

A few points worth keeping straight:

One IEC covers both exports and imports — you do not need separate codes.
It is issued once and is not a licence; there is no annual renewal, but you must keep the details on the DGFT database updated when there are changes in address, bank account, or ownership.
It does not, by itself, authorise you to export or import any restricted or prohibited goods — that depends on the specific ITC-HS code and the policy in force.

Who needs an IEC, and who is exempt

If your handicraft business is based in India and you intend to ship goods out of the country or bring goods in, you need an IEC. The exemption list is narrow and rarely applies to small handicraft traders, but for completeness, DGFT exempts the following categories from holding an IEC:

Importers or exporters whose imports or exports are for personal use and not connected with trade, manufacture, or agriculture.
Persons importing or exporting goods to or from Nepal, Myanmar, or via the Indo-Myanmar border, in certain specified cases under the Foreign Trade Policy.
Individuals importing goods under baggage rules, and certain notified government departments.

If you are running a handicraft business — even a small proprietorship selling through global marketplaces or a foreign buyer’s agent — and you are the party shipping goods out of India, you almost certainly need an IEC.

Prerequisites before you apply

Before you start the application, make sure the following are in place:

A valid PAN for the business entity (for proprietorships, the proprietor’s PAN; for companies and LLPs, the entity’s PAN).
A current bank account in the business’s name, with the IFSC available. DGFT validates this against the bank’s database in real time.
Aadhaar of the authorised signatory for e-sign verification.
A registered business address, and a GST registration if your turnover makes one applicable (GST and IEC are separate but typically held together).
A working email and mobile number — DGFT uses these for OTP-based login and e-sign.

How to apply on the DGFT portal

The application is fully online. At the time of writing, the process runs on the DGFT portal, accessible via the official site (https://www.dgft.gov.in/). Always confirm the current URL, fee, and form fields directly with DGFT before applying, as the portal and the underlying Foreign Trade Policy are updated periodically.

The general flow:

Create a user account on the DGFT portal using the entity’s PAN and a working email and mobile number.
Log in and select “Apply for IEC” from the services menu.
Fill in entity details — name as on PAN, constitution, date of establishment, registered address, and proprietor/partner/director details.
Enter the business’s bank account number and IFSC; DGFT validates this with the bank in real time.
Upload the required documents (see below).
Pay the prescribed fee online — confirm the current amount on the DGFT portal, as fees are revised from time to time.
Sign the application using Aadhaar-based e-sign (or DSC where applicable).
Submit and note the application reference number.

After submission, the IEC is generally issued within a few working days if the application is complete and bank verification succeeds. You can download the IEC certificate from the portal in PDF form; keep both digital and physical copies for your records.

Documents typically required

The exact checklist is published on the DGFT portal and may be updated, but the standard set includes:

PAN of the entity.
Aadhaar of the authorised signatory.
Cancelled cheque, or a recent bank certificate or statement showing the entity’s name, account number, and IFSC.
Passport-size photograph of the applicant.
Certificate of incorporation, partnership deed, LLP agreement, or trust deed, as applicable.
Address proof of the registered office.
MOA and AOA for companies.

Photographs and scans should be clear and within the file size limits the portal specifies.

After you get the IEC: what changes

Once you hold a valid IEC, you can:

Open a foreign currency bank account or a current account with an AD Category-I bank for trade transactions.
File shipping bills (for exports) and bills of entry (for imports) on the ICEGATE customs portal under CBIC, quoting your IEC.
Apply for benefits under the Foreign Trade Policy — see the current FTP text at https://www.dgft.gov.in/CP/?opt=ft-policy — including schemes relevant to handicraft exporters such as RoDTEP, the remission framework that succeeded earlier scrip-based schemes, duty drawback, and EPCG, subject to eligibility and the policy in force at the time.
Apply for membership of export promotion councils, including the Export Promotion Council for Handicrafts (EPCH), which is the natural body for handicraft exporters.
Pursue BIS certification where it is mandatory for the specific product category (for example, certain textiles, metalware, or wooden items with safety or quality standards).

Keep the IEC details up to date. A change of address, bank account, director, or ownership must be reflected on the DGFT portal within the time limit specified in the FTP; failing to do so can lead to deactivation of the IEC and disruption to customs filings.

Common pitfalls for handicraft exporters

Applying with a personal current account instead of a business account — banks sometimes reject the IEC application if the account is not in the trade name.
Mismatch between PAN name and the name on the bank account or Aadhaar — even small spelling differences cause rejections.
Quoting the IEC on shipping documents before the certificate is downloaded and verified — customs brokers occasionally reject mismatches.
Forgetting to update the IEC when the proprietor changes, a new partner joins, or the business address shifts.

How GreenFlip India fits

For Indian handicraft exporters, the IEC is the entry ticket. GreenFlip India’s export desk (greenflip.in) helps handicraft businesses move from “interested in exporting” to “actively shipping” — including guidance on IEC application, GST, ICEGATE processes, EPCH membership, and connecting into the wider GreenFlip network (greenflip.org) for cross-border demand.

Bottom line

The IEC is a one-time, mandatory registration with DGFT that almost every Indian handicraft exporter or importer must hold before shipping a single consignment. Apply online on the DGFT portal (https://www.dgft.gov.in/), keep your PAN, bank, and Aadhaar details clean and consistent, and update the IEC whenever your business details change. Verify the latest fee, form fields, and policy provisions directly with DGFT before you apply — rules do get revised.

Note: This guide is general information for planning, not legal, tax, or customs advice. Indian trade rules change — always confirm current requirements on the official portal (DGFT, ICEGATE/CBIC, the GST portal, or BIS) or with a licensed customs broker before you ship.