Registration·5 min read
How to Start an Import-Export Business: IEC Code Guide
Get your 10-digit IEC in 2–5 days to receive export dollars legally, claim SEIS/RODTEP benefits, and clear customs without courier rejections.
December 28, 2023
What you'll take away
- IEC (Import Export Code) is mandatory for import/export of goods and most service exports.
- Lifetime validity—no renewal fee, but annual DGFT update (April–June) is mandatory.
- Link IEC with AD code at bank for foreign inward remittance settlement.
- Pelago files IEC and coordinates AD code with your current account bank.
Who must have IEC
Any business importing goods into India or exporting goods/services out needs IEC issued by DGFT. Freelancers receiving USD/EUR for export of services typically need IEC for FEMA-compliant FIRC and scheme benefits.
No IEC means customs cannot clear your shipment and banks may flag foreign credits.
Application process (online)
- Proprietorship uses owner PAN; company uses company PAN.
- Branch addresses need clarity for inspection risk.
Apply on DGFT portal with PAN, bank account, address proof, and digital signature.
Fee historically ₹500; timeline 2–5 working days with clean documents.
Founder tip: File IEC before first FEMA inward remittance—banks ask for it during FIRC.
After IEC: AD code and schemes
Authorised Dealer (AD) code links your IEC to a specific bank branch for export proceeds. Without AD code registration at customs, remittance settlement delays.
Schemes: SEIS for service exporters, RoDTEP for goods—eligibility requires IEC + compliant shipping bills/Softex.
Annual update
IEC must be updated every April–June even if zero trade—non-update can deactivate code and freeze shipments.
Set calendar reminder with GST and ROC dates.
Common mistakes
- Using personal savings account without informing bank of export purpose.
- Missing LUT for GST on exports (zero-rated supplies need bond/LUT).
Pelago sets IEC, LUT, and GST export documentation together for SaaS and D2C exporters.