The Import Export Code (IEC) is a mandatory 10-digit business identification number (a provision) required for entities engaged in importing or exporting goods and services in India. It is issued by the Directorate General of Foreign Trade (DGFT), which operates under the Ministry of Commerce and Industry. The IEC is rooted in the framework of the Foreign Trade (Development and Regulation) Act, 1992, and was established to serve as a legal identification for traders, helping the government monitor cross-border trade, collect customs duties, and regulate foreign policy compliance.
The mechanism is straightforward: no person can make an import or export without obtaining an IEC, unless specifically exempted. It is essential for customs clearance of shipments and for banks to process international payments, both inward and outward. Furthermore, holding an IEC is a prerequisite for availing benefits under various export promotion schemes outlined in the Foreign Trade Policy (FTP).
A major change occurred with the introduction of GST, as the 10-digit IEC number is now the same as the firm's Permanent Account Number (PAN), though a separate application to the DGFT is still required to obtain the IEC status. More recently, the DGFT introduced a mandatory compliance requirement through Notification No. 58/2015-2020 in February 2021. This provision mandates that every IEC holder must electronically update or confirm their details annually between April and June. While the IEC retains its lifetime validity, failure to complete this annual update by June 30th results in the deactivation of the code, which blocks all import and export activities until it is reactivated.