The Import Export Code nobody renews — until customs quietly blocks their shipment
Most businesses treat the Import Export Code as a one-time chore: get it once before the first shipment, file it away, forget it exists. That worked for years. It does not anymore. Since the rules changed, an IEC that you obtained and never touched again can be switched off by the system without anyone telling you — and you find out when a shipping bill bounces or a customs clearance stalls, right when a consignment is sitting at the port. The registration is easy; the part that catches people is the mandatory annual update nobody remembers. Here is what an IEC is, who actually needs one, how to get it, and the once-a-year step that keeps it alive.
What an IEC is
The Import Export Code (IEC) is a ten-digit identification number issued by the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry. It is the licence to trade across India's borders: no business can import goods into India or export goods out of it without one (barring a few specific exemptions). Think of it as your business's passport for international trade — customs, banks and the DGFT all key off it to identify who is moving goods in and out of the country. It is issued once and is valid for the lifetime of the business; there is no expiry date and no renewal fee. That "permanent" status is exactly what lulls people into ignoring it — and where the annual-update trap is hidden, which we come to below.
It is built on your PAN — one PAN, one IEC
The IEC is PAN-based, not GST-based. It is linked to the business's Permanent Account Number, and the rule is strict: one PAN can hold only one IEC, however many branches, divisions or product lines the business runs. Having a PAN does not automatically give you an IEC — you still have to apply for and be granted the code on the DGFT portal — but the PAN is the anchor the whole thing is built around. For a company or LLP the IEC sits on the entity's PAN; for a proprietor it sits on the individual's PAN. This is also why an IEC pairs naturally with your other PAN-linked registrations rather than duplicating them.
Who actually needs one
If you import or export goods as a business, you need an IEC — it is required to file the shipping bill for an export or the bill of entry for an import, and to receive export payments through your bank. It is also the gateway to export incentives: schemes like RoDTEP (Remission of Duties and Taxes on Exported Products) are claimed against your IEC, so without an active code you cannot draw the benefits either.
Services and software are the grey area. For the export of services or technology, an IEC is generally not mandatory — unless the service provider is claiming benefits under the Foreign Trade Policy, or dealing in specified or restricted (SCOMET) items. In practice many service and software exporters still obtain an IEC anyway, because banks and forex documentation for inward remittances often expect it, and it keeps the door open to FTP benefits later. If you are unsure which side of the line your business sits on, that is worth a five-minute check before you assume you are exempt.
How to get one
Registration is fully online on the DGFT portal (dgft.gov.in). You register on the portal, apply under the IEC service with the entity's PAN, upload the basic set — PAN, proof of the business's address, a cancelled cheque or bank certificate for the current account, and the entity's registration proof — verify through Aadhaar or digital signature, and pay the government fee. The code is usually issued electronically within a day or two of a clean application. It is one of the simpler registrations a trading business does — closer to the effort of the Udyam (MSME) registration than to a full incorporation.
The part everyone misses: the mandatory annual update
This is the rule that turns a "get it once" registration into an ongoing obligation. Every IEC holder must confirm and update the IEC details on the DGFT portal every year, between 1 April and 30 June — even if nothing has changed. The update itself is free and takes a few minutes: log in, review the details, submit. The catch is the consequence of skipping it. An IEC that is not updated within that window is automatically de-activated by the DGFT system — no notice, no reminder that most people notice. A de-activated IEC cannot be used to file a shipping bill or a bill of entry or to claim RoDTEP, which means a live shipment can be stopped at the port. Re-activation is possible by belatedly completing the update, but the system typically holds the IEC for a few business days after re-activation, during which trade stays blocked. So the practical rule is simple: put the April–June confirmation on the calendar the same way you diarise a tax return, and it never becomes a problem.
Where this sits in starting up
An IEC is the cross-border extension of your business's registration stack. It sits on the same PAN as the entity you set up when you chose your structure, pairs with your GST registration for exporters (exports are zero-rated under GST, and the two work together at customs), and belongs on the day-one checklist alongside the Shop & Establishment registration, professional tax and Udyam for any business that plans to trade internationally. If cross-border trade is on your roadmap, the IEC is one of the registrations to set up early rather than in a rush when the first order arrives, as part of the wider starting-a-business plan.
How we handle it at RDA, Baner
At RDA Advisory, Baner, we register your IEC and — just as importantly — keep it alive. We apply on the DGFT portal with the right PAN and documents, get the code issued, and then fold the mandatory April–June annual update into our compliance calendar so your IEC is never silently de-activated the year you are busiest. We line it up with your GST and your entity registration so exports flow cleanly through customs and your RoDTEP and other benefits stay claimable. Office No. 102, Snehraj Apartment, Baner, Pune 411045 · call +91 77570 45059.
Trading across borders? Get your IEC — and keep it active
Starting to import or export, or worried your old IEC may have lapsed? RDA registers your Import Export Code, checks whether an existing one is still active, and handles the annual update so a shipment is never held up by a de-activated code. Book a consult at rdatax.in or call +91 77570 45059, or see our business registration service. RDA Advisory, Baner, Pune.
Verification note: The Import Export Code (IEC) is a ten-digit identification number issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, under the Foreign Trade (Development and Regulation) Act, 1992 and the Foreign Trade Policy. It is PAN-based, with one IEC permitted per PAN, is applied for online on the DGFT portal (dgft.gov.in), and is valid for the lifetime of the entity with no renewal fee. IEC holders are required to confirm/update their IEC details electronically on the DGFT portal every year between 1 April and 30 June, failing which the IEC is de-activated and cannot be used to file customs documents (shipping bill / bill of entry) or claim benefits such as RoDTEP until it is re-activated by completing the update. An IEC is required for the import or export of goods and to avail export benefits; for the export of services or technology it is generally not required unless benefits under the Foreign Trade Policy are claimed or specified/SCOMET items are involved. Procedures, fees, documents and the annual-update rule are periodically revised; confirm the current position for your business with your CA or advisor before relying on it. This is general information, not legal or professional advice.
