If you import or export goods, you need an Importer Exporter Code (IEC) unless DGFT specifically exempts you. If you export services, an IEC is needed to avail Foreign Trade Policy benefits. This guide sets out who needs an IEC, who is exempt, and what the rules say about service exporters, freelancers and e-commerce sellers, based on the Foreign Trade Policy 2023 and the Handbook of Procedures 2023. For the basics, see how DGFT and IEC differ.
For goods, no import or export can be made without an IEC unless you are specifically exempted. For services or technology, an IEC is needed where you want to avail benefits under the Foreign Trade Policy. Exempt categories, such as Government departments, personal-use imports/exports and certain small border trade, are listed in HBP 2023 para 2.07, along with permanent IEC numbers for specific categories.
The Rule: Goods vs Services
| Factor | Goods | Services or Technology |
|---|---|---|
| Is an IEC required? | Yes. No export or import of goods without an IEC, unless specifically exempted | Required on the date of rendering services for availing benefits under the Foreign Trade Policy |
| Source | FTP 2023, para 2.05(a) | FTP 2023, para 2.05(a) |
An IEC is a 10-character alpha-numeric number. For PAN-based entities, the IEC number is the same as the entity’s PAN, but it is separately issued by DGFT on an online application (FTP 2023, para 2.05).
Who Needs an IEC
Importers and exporters of goods
Any person or entity importing goods into India or exporting goods from India needs an IEC, unless an exemption below applies. The entity type doesn’t change the rule: proprietorships, partnerships, LLPs, companies, trusts, societies and HUFs all apply online with their PAN. To get one, apply for IEC registration.
E-commerce sellers of goods
The IEC provisions (FTP 2023 para 2.05 and HBP 2023 para 2.07) don’t set a separate e-commerce rule. Exporting goods through an online marketplace is still an export of goods, so the goods rule applies: an IEC is needed unless a specific exemption applies. The marketplace, courier or Customs may ask for further documents for the shipment.
Service exporters, freelancers and consultants
For export of services or technology, FTP 2023 para 2.05(a) ties the IEC requirement to availing benefits under the Foreign Trade Policy. Freelancers and consultants exporting services are subject to the same rule. If you are a service exporter who wants to claim FTP benefits, you need an IEC on the date of rendering the services. Separately, a bank or platform you work with may have its own documentation requirements; check with them.
Who Is Exempt from IEC
HBP 2023 para 2.07(a) exempts these categories of importers or exporters from obtaining an IEC:
| # | Exempt Category | Conditions |
|---|---|---|
| (i) | Importers covered by clause 3(1) and exporters covered by clause 3(2) of the Foreign Trade (Exemption from application of Rules in certain cases) Order, 1993 | Except sub-clauses (e) and (l) of 3(1), and (i) and (k) of 3(2) |
| (ii) | Ministries / Departments of the Central or State Government | — |
| (iii) | Persons importing or exporting goods for personal use | Not connected with trade, manufacture or agriculture |
| (iv) | Persons importing/exporting goods from/to Nepal, Bhutan, Myanmar (through Indo-Myanmar border areas) and China (through Gunji, Namgaya Shipkila and Nathula ports) | CIF value of a single consignment: up to ₹25,000 for Nepal, Bhutan and Myanmar; up to ₹1,00,000 for China via Gunji and Namgaya Shipkila; up to ₹2,00,000 for China via Nathula |
SCOMET exception: the exemption from obtaining an IEC does not apply to the export of SCOMET items (Appendix 3, Schedule 2 of ITC (HS), 2022), except for exports by Central/State Government ministries and departments (category (ii)).
DGFT’s Permanent IEC Numbers
An exemption means you don’t need to obtain your own IEC. A permanent IEC is different: it is a fixed number that DGFT lists for specific categories to quote for their import/export. HBP 2023 para 2.07(b) lists these for non-commercial PSUs and specific categories of importers/exporters:
| # | Permanent IEC | Category |
|---|---|---|
| 1 | AMDCG0111E | Central Government ministries and departments, and agencies wholly or partly owned by them |
| 2 | ADSGA0129E | State Government departments, and agencies wholly or partly owned by them |
| 3 | DCUNO0137E | Diplomatic personnel and counsellor officers in India, and officials of the UNO and its specialised agencies |
| 4 | IABBR0145E | Indians returning from or going abroad who claim benefit under the Baggage Rules |
| 5 | IIHIE0153E | Persons, institutions and hospitals importing or exporting goods for personal use (not connected with trade, manufacture or agriculture) |
| 6 | IIEGN0161E | Non-commercial imports from, or exports to, Nepal |
| 7 | IIEGM0170E | Non-commercial imports from, or exports to, Myanmar through the Indo-Myanmar border areas |
| 8 | ATAEF1096E | Goods imported under ATA carnet for display or use at fairs, exhibitions or similar events; also usable for exhibition/fair imports under HBP para 2.60 |
| 9 | IDNBG1100E | Director, National Blood Group |
| 10 | ICIRN1126E | Individuals, charitable institutions and registered NGOs importing goods that a Ministry of Finance notification exempts from Customs duty, for bona fide use by victims of natural calamities |
| 11 | IIEGC1134E | Imports/exports of notified permissible goods from or to China through Gunji, Namgaya Shipkila and Nathula ports, within the single-consignment value ceilings in para 2.07(iv) |
| 12 | NCIEE1169E | Non-commercial imports and exports by entities authorised by the Reserve Bank of India |
Source: Handbook of Procedures 2023, para 2.07. Check the current HBP before relying on a permanent IEC for a transaction. Using a permanent IEC doesn’t remove other import/export requirements, such as Customs formalities or any authorisation the goods need.
What an Exemption Doesn’t Cover
- Restricted goods: an IEC (or an exemption from it) is not an authorisation. Goods that are restricted, or need a separate authorisation or permission, still need it.
- Commercial trade: the personal-use exemption applies only where the import/export isn’t connected with trade, manufacture or agriculture.
- Border trade above the limits: the Nepal/Bhutan/Myanmar/China exemption applies only up to the CIF value ceilings per single consignment.
Not sure whether your business needs an IEC? Our team can check your situation and, if you need one, file the application for you. Apply for IEC registration or leave your details in the form.
Once You Have an IEC
- Single IEC per PAN: Only one IEC is issued against a single PAN (the IEC is linked to the entity’s PAN), and it covers all your branches, divisions, units and factories (HBP 2023, paras 2.10 and 2.12).
- No periodic renewal: an IEC has permanent validity unless suspended or cancelled (HBP 2023, para 2.10).
- Annual update: you must complete the annual IEC update every April–June, even if nothing has changed. DGFT charges no fee for updation in that window (FTP 2023, para 2.05(d); Appendix 2K).
- Deactivation: an IEC that isn’t updated will be deactivated. It can be activated again on successful updation (FTP 2023, para 2.05(e)).
- Changes: update any change in constitution, address, bank or other primary details within 30 days (HBP 2023, para 2.14(b)).
Before a new transaction, check whether your IEC is valid, or let us handle annual updates and reactivation through our IEC renewal and update service.
Frequently Asked Questions
Who needs an IEC code?
Anyone importing or exporting goods from India, unless specifically exempted (FTP 2023, para 2.05(a)). For services or technology, an IEC is needed where you want to avail benefits under the Foreign Trade Policy.
Is IEC required for export of services?
Under FTP 2023 para 2.05(a), an IEC is necessary on the date of rendering services for availing benefits under the Foreign Trade Policy.
Do freelancers need an IEC?
Freelancers exporting services are subject to the same IEC rule that applies to service exporters: an IEC is needed for availing FTP benefits. A bank or platform may have its own documentation requirements, so check with them.
Do Amazon or e-commerce exporters need an IEC?
Exporting goods through e-commerce is an export of goods, so an IEC is needed unless a specific exemption applies. The marketplace, courier or Customs may need further documents.
Do I need an IEC to import goods for my business?
Yes. Imports for trade, manufacture or agriculture aren’t covered by the personal-use exemption, so you need an IEC unless another exemption in HBP 2023 para 2.07 applies (FTP 2023, para 2.05(a)).
Who is exempt from IEC?
The categories in HBP 2023 para 2.07(a): specified categories under the Foreign Trade (Exemption from application of Rules in certain cases) Order, 1993; Central/State Government ministries and departments; personal-use imports/exports not connected with trade, manufacture or agriculture; and certain Nepal, Bhutan, Myanmar and China border trade within value limits.
Do I need an IEC for personal imports?
Not if the goods are for personal use and not connected with trade, manufacture or agriculture (HBP 2023, para 2.07(a)(iii)). DGFT also lists a permanent IEC, IIHIE0153E, for persons, institutions and hospitals importing or exporting goods for personal use.
What is a permanent IEC?
A fixed IEC number listed in HBP 2023 para 2.07(b) for specific non-commercial categories, such as Government departments (AMDCG0111E, ADSGA0129E), diplomats (DCUNO0137E) and baggage-rule cases (IABBR0145E).
Does an exemption apply to SCOMET exports?
Generally no. The IEC exemption doesn’t apply to exports of SCOMET items, except where the export is made by Central or State Government ministries or departments (HBP 2023, para 2.07(a)).
Does an IEC let me import restricted goods?
No. An IEC identifies an importer or exporter. Restricted goods, or goods needing a separate authorisation or permission, still need it.
Conclusion
If you trade in goods, you need an IEC unless you fall within a specific exemption under HBP 2023 para 2.07. If you export services, the IEC requirement is tied to availing Foreign Trade Policy benefits. Check your category against the tables above, and if you need an IEC, the application is online.
Need an IEC? Apply for IEC registration with our team, or leave your details in the form.
Sources
- DGFT, Foreign Trade Policy 2023, Chapter 2: para 2.05 (IEC), 2.05(a) (goods/services rule), 2.05(b) (exempt categories in HBP 2.07), 2.05(d) (annual updation), 2.05(e) (deactivation and activation).
- DGFT, Handbook of Procedures 2023: para 2.07(a) (exempt categories, SCOMET exception), 2.07(b) (permanent IECs), 2.10, 2.12, 2.14(b).
- DGFT, Appendix 2K (fees): annual updation April–June, Nil.
