IEC Code: How to apply, Benefits, Fees

Thinking about launching an import-export business or taking your current business international?

An IEC Code (Import Export Code) is your key to making it happen. This 10-digit code, issued by the DGFT, is essential for any business dealing with cross-border trade. Benefits of IEC Code include smoother customs clearance, seamless international payments, and exclusive export benefits.

In this guide, we’ll cover everything you need to know about getting an IEC Code—from how to apply for one to benefits—so you’re ready to start trading globally with ease. 

What is IEC Code Full Form? 

IEC code stands for Importer Exporter Code. It is a vital 10-digit identification number required for anyone willing to engage in import or export activities in India.

The IEC code is issued by the Directorate General of Foreign Trade (DGFT) and is essential for clearing customs and facilitating international trade transactions.

Who can apply for IEC code?

Any business entity looking to start an international business involving import/export operations can apply for an IEC code. This includes:

Do I need an IEC Code for export? 

Yes, if you are exporting goods from India, you do need an IEC code. IEC code is essential for any business engaged in international trade activities in India. Here are the key situations when you need an IEC code:

Getting goods through customs

The IEC code is mandatory for customs clearance of goods at ports and airports during import and export operations. Customs authorities require this code to ensure that shipments comply with legal regulations.

Making international money transfers

Banks require IEC code when processing international payments. This ensures that transactions are legitimate and comply with trade laws, facilitating smooth financial operations for importers and exporters.

For claiming export benefits

Having an IEC code is necessary to benefit from various government schemes, such as the Merchandise Exports from India Scheme (MEIS) or Service Exports from India Scheme (SEIS). These incentives can significantly enhance a business's profitability.

How can I apply for an IEC Code in India?

The IEC code registration/application process is as follows: 

How to Check IEC Code? 

Here’s how you can view and print your IEC code: 

How to Verify IEC Code? 

It is important to verify IEC code as it confirms the authenticity and validity of this code, which is mandatory for businesses involved in international trade.

To verify your Importer Exporter Code IEC code (Import Export Code), you can use the ICEGATE and DGFT portals. Here’s how:

Verification of IEC Code via DGFT

Alternatively, you can also verify your IEC code via ICEGATE website. To check your IEC status, access the Services tab, select Check IE Code/BIN Status, enter your IEC code, and click IE Code@ICEGATE to view detailed status information.

What Documents Are Required for IEC Code Registration? 

Here are the required documents for the IEC application:

What is IEC Code Registration Fees? 

The IEC code registration fee structure is as follows: 

What are the Benefits of IEC code? 

Here are the key benefits of having an IEC code:

Expanding your business cross-border

IEC enables legal cross-border trade, letting businesses enter international markets and conduct import-export operations smoothly.

Leverage the benefits of government schemes

Access to export promotion schemes like MEIS (Merchandise Exports from India Scheme), which helps offset infrastructure inefficiencies, and SEIS (Service Exports from India Scheme), which offers duty credits based on foreign exchange earnings.

Enjoy tax advantages

GST exemptions are available for exporters when filing a Letter of Undertaking (LUT), allowing goods to be exported without upfront tax payment. 

How to Link GST with IEC Code? 

Linking IEC with GST unifies business identification, streamlines compliance through automatic updates, facilitates financial tracking, and enables access to export incentives while enhancing operational efficiency. The linkage should be established during initial GST registration and verified annually during the DGFT compliance review period.

Below are the steps to link your IEC code with GST (Goods and Services Tax): 

Take Your International Business Further with Skydo

Getting your IEC code is the first step toward establishing your presence in international markets. While the process might seem complex, following the proper steps and maintaining annual compliance ensures smooth international trade operations.

For businesses ready to leverage their IEC code, platforms like Skydo offer secure and efficient international payment solutions. With features like real-time payment tracking, multi-currency support, and automated compliance checks, Skydo complements your IEC by streamlining cross-border transactions at lower fees than traditional banks. 

By combining your IEC compliance with Skydo's payment infrastructure, you can focus on growing your international business while ensuring regulatory compliance.

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