You can negotiate a perfect deal with a perfect factory and still not be able to import it. A handful of registrations stand between a signed purchase order and a legal entry into India, and most are free or cheap and quick to get, if you start before the goods ship.
The Importer Exporter Code (IEC) is a ten-digit identification number issued by the Directorate General of Foreign Trade (DGFT). Customs uses it to recognise you as a legitimate importer, banks ask for it before releasing foreign-currency payments for goods, and it appears on every Bill of Entry you file. Without it, a commercial import cannot be cleared in your name.
It is linked to your PAN, which means one person or entity holds one IEC, and it is not tied to any single product, supplier or port. You get it once, keep it current, and use it for every order after that.
The application is made online through the DGFT portal. The details change occasionally, so treat the list below as the usual shape of it rather than a checklist to the letter:
Applications that are clean are often processed within a few working days. Mismatches between the PAN, the bank account name and the address are the most common cause of delay, so make sure all three read exactly the same.
The IEC is issued against a legal entity, and that entity then becomes the importer on record: its name sits on the Bill of Entry, on the supplier's invoice, and on the GST credit you claim. That makes the choice less trivial than it looks.
| Structure | Why founders pick it | Trade-off to know |
|---|---|---|
| Proprietorship | Fastest and cheapest to set up | No separation between you and the business; liability is personal |
| Partnership / LLP | Shared ownership, some liability protection (LLP) | More paperwork; every partner's details are involved |
| Private limited company | Credibility with suppliers and banks; clean separation of liability | Higher setup and compliance cost |
If you intend to import regularly or at meaningful value, take advice on the structure before you apply. Moving an established import history from one entity to another later is far more work than choosing well at the start.
An IEC does not need renewing, but it does need confirming. DGFT asks holders to update their details on the portal within a set window each year, and an IEC that has not been updated can be flagged inactive. The practical consequence is a filing that gets rejected on the day you can least afford it. Put the update window in your calendar the same day you receive the code.
The IEC is rarely the problem. The delay is almost always a mismatch: the supplier's invoice, the bank remittance, the Bill of Entry and the IEC all need the importer name and address to match. Fix this at the proforma invoice stage, not at the port.
The IEC is the headline registration, but it is not the only one standing between you and a cleared shipment.
| Registration | What it is for | When to sort it |
|---|---|---|
| GST registration | Lets you pay IGST on import and claim it as input credit against your sales | Before the first shipment arrives |
| ICEGATE access | The customs e-filing system your Bill of Entry is filed through, usually by your customs broker | Alongside your IEC |
| AD code registration | Links your IEC to the authorised dealer bank that handles your import remittances, registered with the port | Before you file at a specific port |
| Product certifications | BIS, WPC, FSSAI and others, depending on the goods | During sourcing, not after production |
The last row is where most first orders actually run into trouble. See our compliance guide for how to check what applies to your specific product.
Choose who will hold the IEC, ideally with advice from an accountant.
A current account in the entity's name, at a bank that handles foreign-currency import payments.
These two can run in parallel and both take days rather than weeks when the documents are clean.
They will take care of ICEGATE filing and port-side registration once your IEC is live.
Begin these alongside production, not after the goods are on the water.
This guide explains how the process generally works and is not legal or tax advice. DGFT, GST and customs rules and fees change, so confirm current requirements on the official portals or with a qualified professional.
In general, yes. An Importer Exporter Code is required to import goods for commercial purposes. Narrow exceptions exist, for example certain personal-use imports, so confirm your specific case with DGFT or a customs professional before assuming you are exempt.
Small courier-based samples are sometimes handled differently from commercial cargo, but the rules depend on value, goods and mode of shipment. Do not plan a first container around an exemption. Getting the IEC is quick enough that it is rarely worth the risk.
The code itself is issued for life, but DGFT requires holders to confirm or update their details each year. An IEC that is not kept current can be deactivated, which blocks new import filings until it is reactivated. Check the current update window on the DGFT portal.
No. One IEC is tied to your PAN and covers all the goods you import, subject to whatever product-specific licences or certifications those goods need.
We can walk you through the application and the order the registrations should be done in, and coordinate with a customs professional for the port-side steps. The registrations stay in your name or your company's name, as they must.
We will walk you through the registrations in the right order, so nothing is waiting on a document when your goods are ready to ship.
