Master Guide to IEC (Importer-Exporter Code) – India
A practical, end-to-end guide: What, Why, When, How, Steps, Benefits, Use cases, FAQs
1) What is IEC
IEC (Importer-Exporter Code) is a business identification number issued by the Directorate General of Foreign Trade (DGFT), Government of India. It is used to identify an entity that is doing international trade—especially importing into India or exporting from India.
Key points
- IEC is mainly required for trade in goods (imports/exports of physical products).
- IEC is issued to:
- Individuals (proprietorship)
- Partnership firms
- LLP
- Private Limited / Public Limited companies
- Trusts / Societies (where applicable)
IEC after GST (important)
In many cases, IEC is issued based on PAN, and the IEC number often aligns with the PAN of the entity.
But practical reality: PAN ≠ IEC in “process terms.” You still need to apply and get IEC activated/issued in DGFT, and you must keep it updated/active.
2) Why IEC exists (the “Why”)
IEC exists to provide a controlled, trackable mechanism for cross-border trade. It helps:
- Trade identification & governance
Government systems need a consistent identifier to track import/export activity per entity. - Customs and compliance flow
IEC is used in workflows that connect DGFT, Customs systems, and banking/payment compliance. - Trade benefits and authorizations
Many export/import benefits (where applicable) and special authorizations require a valid IEC. - Risk and fraud reduction
It prevents anonymous trade behavior and enables KYC-level accountability.
3) When IEC is required (and when it may not be)
A) You typically NEED IEC when:
- You import goods into India for business/commercial purposes.
- You export goods from India for business/commercial purposes.
- You want to use certain DGFT trade authorizations / benefits / incentives linked to an IEC.
B) Service export nuance (very important)
If you export services (IT services, consulting, marketing, design, freelancing, software services, etc.):
- IEC is often not required purely to export services.
- But IEC may be required if you want to claim specific benefits under India’s foreign trade policy mechanisms, or if a bank/payment provider requires IEC as part of business verification/compliance.
C) When IEC may NOT be required (common situations)
- Personal imports/exports not connected to business/trade/manufacturing/agriculture.
- Government departments and notified exempt categories.
- Certain special border trade situations (subject to rules/limits).
Real-world takeaway:
If you are moving goods internationally for business → assume IEC is required.
If you are exporting services only → IEC may be optional unless benefits/compliance demand it.
4) Benefits of IEC (practical and real)
Core benefits
- Legal enablement of import/export
- For goods trade, IEC is often a baseline requirement to operate smoothly.
- Faster compliance with banks/payment providers
- Many financial institutions and international payment platforms ask for IEC as part of business verification, especially for company/LLP profiles.
- Access to trade mechanisms
- Certain export-import authorizations and benefits depend on having a valid, active IEC.
- Simplifies customs and documentation workflow
- It helps standardize your trade identity across invoices, shipping bills, customs declarations, and remittance compliance.
- Long-term trade readiness
- Even if you don’t import/export today, having IEC can make future cross-border operations smoother.
5) IEC validity and ongoing compliance (don’t miss this)
A) Is IEC “lifetime”?
IEC is issued once, but it is not “set and forget.”
B) Annual update / confirmation requirement
DGFT requires annual updating/confirmation of IEC details during a defined window (commonly April–June).
Even if nothing changed, you must do a “no change” confirmation online.
C) What happens if you don’t update?
IEC may become inactive/deactivated, which creates problems:
- trouble with trade transactions
- rejections in verification processes
- disruptions in importing/exporting goods
Practical rule:
Treat IEC like a license that must be “kept active” every year.
6) What you should keep ready before applying (pre-requisites)
A) Entity & identity basics
- PAN of the entity (or individual in proprietorship)
- Entity type details (company/LLP/firm/proprietor)
- Registered address details (consistent across documents)
B) Key people details (especially company/LLP)
- Director / Partner / Proprietor details:
- Name (as per PAN record)
- PAN
- DOB (for Aadhaar e-Sign usage)
- Mobile number
C) Bank details
- Bank account number
- IFSC
- Branch details
- Often required: proof such as cancelled cheque/bank certificate (portal may ask)
D) Digital signing method readiness (this is where most people get stuck)
You must sign the application using:
- Aadhaar e-Sign (OTP) OR
- DSC (Digital Signature Certificate)
If Aadhaar e-Sign fails frequently (especially from outside India), DSC becomes the faster route.
7) How to apply IEC online (step-by-step, end-to-end)
Step 1: Create/Access DGFT account
- Register on DGFT portal using email/mobile.
- Complete basic profile details.
- Login and go to the IEC services area.
Step 2: Start IEC application
- Choose Apply for IEC.
- Select entity type (proprietor / partnership / LLP / company etc.).
Step 3: Fill entity profile
- Legal name (must match PAN records)
- Address and contact details
- Nature of business
Important: Keep the spelling and formatting consistent with PAN/official records.
Step 4: Add Proprietor/Partner/Director details
This step causes the most portal issues.
Must-do rule:
- Don’t just type details—ensure the person is added as a saved row in the portal’s table/list.
Common portal behavior:
- You enter a director mobile number, click next, and it “disappears” or throws “Please enter valid mobile”
This typically happens because the entry was not properly Add/Update + Save in the portal workflow.
Step 5: Fill bank details
- Enter account details exactly as per bank records.
- Use the correct IFSC and account holder name alignment.
Step 6: Upload documents (if asked)
Depending on entity type, the portal may request supporting documents.
Step 7: Review application summary
Before signing:
- Re-check names, addresses, bank details
- Re-check director/partner/proprietor details
- Ensure the signatory’s details are complete
Step 8: Sign submission (Aadhaar e-Sign or DSC)
This is your final step.
Option A: Aadhaar e-Sign (OTP based)
- You give consent
- The portal redirects to external authentication
- You authenticate using Aadhaar or VID + OTP
Prerequisites for Aadhaar e-Sign to work (critical):
- The signer’s details must be present and correctly saved in the IEC profile/application.
- Aadhaar must be active (not suspended).
- OTP must be receivable on the Aadhaar-registered mobile.
- VID must be valid (if using VID).
Option B: DSC (Digital Signature Certificate)
- You use a USB token-based digital certificate
- More stable for corporate filings and for users abroad (no OTP dependency)
Step 9: Pay fee and submit
- Pay the IEC application fee via the payment gateway.
- Submit successfully.
Step 10: Download IEC certificate
- After successful submission, IEC can be downloaded/printed from the portal.
8) Aadhaar e-Sign master troubleshooting (based on real DGFT behavior)
Why Aadhaar e-Sign fails even when details look correct
Because e-Sign is an external authentication flow. Failures usually come from:
- session/cookie/popup restrictions
- mismatch between signatory identity fields
- OTP delivery problems
- VID invalid/expired
- Aadhaar status issues
- external e-Sign service response failures
Common error codes you already saw mentioned
- Error 111: mobile number mismatch or OTP cannot validate against Aadhaar-registered mobile
- Error 515: invalid VID
- Error 517: expired VID
- Error 998: invalid Aadhaar number
- Error 996: Aadhaar suspended (must resolve with UIDAI)
“Document sign failed. Issue in response from Aadhaar E-sign”
This typically means:
- the e-Sign provider returned a failed/empty response, often due to
- popup/cookie/session issues
- network/VPN blocks
- OTP timing issues
- service downtime/instability
- cross-origin redirect failing
Practical fixes (non-technical but effective)
- Use a clean browser session:
- Incognito mode
- no extensions
- Allow popups for DGFT
- Allow third-party cookies temporarily for DGFT signing
- Avoid VPN
- Try again using a newly generated VID
- Ensure Aadhaar OTP can be received (especially if you are outside India)
If you are outside India (common issue)
Aadhaar OTP failures are common due to:
- roaming disabled
- SMS not delivered internationally
- Indian SIM inactive/expired
- OTP blocked by carrier filtering
Best option if abroad: DSC is usually more reliable.
9) Real-world use cases for IEC (so you know when it truly matters)
Use case 1: Importing goods into India
Example:
- importing equipment (servers, laptops, medical devices, machinery)
- importing raw materials for manufacturing
IEC becomes a backbone requirement in many trade compliance flows.
Use case 2: Exporting goods from India
Example:
- D2C products shipped abroad
- manufacturing exports
- trading exports
IEC often appears in shipping/customs documentation.
Use case 3: Service business receiving international payments
Many service businesses don’t “need” IEC legally, but IEC can be demanded by:
- banks for compliance checks (depending on profile)
- international payment platforms for company/LLP onboarding
Especially for LLP/Pvt Ltd cases, compliance checklists can be stricter.
Use case 4: Scaling into international trade later
Even if you are not exporting/importing today:
- IEC is useful for quickly starting cross-border operations when a client opportunity comes.
10) Best practices (to avoid DGFT pain)
Best practices while filling the form
- Keep PAN name spelling exactly consistent.
- Use a stable internet connection.
- Save each section properly (don’t rely on auto-save).
- Confirm the director/partner is visible as a saved row with all mandatory fields.
- Don’t open multiple DGFT tabs while signing.
Best practices for Aadhaar e-Sign
- Use VID instead of Aadhaar number (often smoother).
- Ensure OTP reception is reliable before starting.
- Do not refresh/back during signing flow.
Best practices for long-term IEC maintenance
- Put a reminder every year for IEC confirmation/update window.
- Update changes immediately if:
- address changed
- directors changed
- bank account changed
- email/mobile changed
11) Complete FAQ (most asked questions + practical answers)
Basics
Q1. Is IEC mandatory for all businesses?
No. It is primarily mandatory for import/export of goods. For service exports, it may not be mandatory unless benefits/compliance require it.
Q2. Is IEC required for freelancers exporting services?
Often not, unless you are claiming benefits or your bank/payment provider asks for IEC for verification.
Q3. Is IEC different from PAN?
Yes in process and compliance terms. Even if the IEC number aligns with PAN, you still must apply, get it issued, and keep it active/updated.
Q4. Can I use PAN in place of IEC on platforms that ask IEC?
Generally no. If a platform specifically asks for IEC, they want proof that DGFT IEC exists and is active—not only the PAN.
Application & process
Q5. How long does it take to get IEC?
If all details and signing work smoothly, it can be quick (often same day). Delays usually come from signing failures, mismatched details, or validation issues.
Q6. What is the fee for IEC?
Government fees include application and modification charges as per DGFT. (Exact amounts can be seen in the portal during payment.)
Q7. What details cause rejection or failure?
- wrong or inconsistent name (PAN mismatch)
- incomplete signatory details
- bank details mismatch
- signing failures (Aadhaar/DSC)
- address verification issues (when triggered)
Aadhaar e-Sign (very relevant to your case)
Q8. What are prerequisites for Aadhaar e-Sign on DGFT?
- Signer details correctly saved in the application/profile
- Aadhaar active (not suspended)
- Access to Aadhaar registered mobile for OTP
- Browser must allow popups/cookies for the external signing flow
Q9. What is VID and why should I use it?
VID is a virtual ID from Aadhaar services. It’s often recommended because it can work more smoothly than entering Aadhaar number directly, and it adds privacy.
Q10. I got “Document sign failed. Issue in response from Aadhaar e-Sign.” What does it mean?
It means DGFT didn’t get a successful confirmation from the e-Sign provider. Causes include OTP issues, session/cookie restrictions, popup blocks, VPN/network blocks, or temporary service instability.
Q11. What is error 111?
Most commonly tied to mobile number mismatch with Aadhaar/OTP authentication problems.
Q12. What is error 515 and 517?
VID issues:
- 515: invalid VID
- 517: VID expired
Q13. What is error 996?
Aadhaar is suspended—must be resolved with UIDAI.
Q14. What if I’m outside India and OTP doesn’t arrive?
Aadhaar e-Sign may fail repeatedly if your Aadhaar-linked SIM cannot receive OTP reliably abroad. In that case, use DSC.
Director details & portal “deleting mobile number”
Q15. DGFT throws “Please Enter Valid Mobile Number of Director” even after saving. Why?
Often because:
- the portal didn’t record the director entry as a saved row (Add/Update step missed)
- mobile format not accepted (must be 10 digits, no +91, no spaces)
- session issues where the save didn’t persist
Q16. The mobile number disappears after I move to the next page. What to do?
Edit the director row → enter mobile/email → click Add/Update → Save → reopen the same section to confirm it persisted.
IEC profile linking & “Please link your IEC profile”
Q17. Why do I see “Please link your IEC profile”?
It usually means your DGFT login is not linked to an IEC profile yet (or you are in a registration step that expects an IEC profile to be linked for certain actions).
Q18. Can I apply for IEC without linking first?
Yes—you apply first, then the issued IEC becomes linkable/visible to your DGFT profile. The confusion happens when you are trying to use features that require an existing linked IEC profile.
Maintenance / updates
Q19. Do I need to update IEC every year even if nothing changes?
Yes—typically you must confirm/update annually within the DGFT window to keep IEC active.
Q20. What changes should I update immediately?
- address change
- director/partner/proprietor change
- bank account change
- email/mobile change
Not updating can cause failures in trade/banking verification.
Practical “Wise / bank onboarding” questions
Q21. Why do payment providers ask for IEC?
For compliance and verification—especially for company/LLP profiles receiving international payments.
Q22. If I only provide services, do I still need IEC for payment receiving?
Legally you may not need it for service export, but a platform/bank might still require it for their KYC/compliance checklist depending on entity type.
12) Quick “Action Checklist” (copy-paste style)
If your goal is: “Get IEC successfully with minimum trouble”
- Ensure PAN name/address consistency
- Enter all director/partner/proprietor details and verify they are saved as rows
- Keep bank details aligned with bank records
- Prefer DSC if:
- you are abroad OR
- Aadhaar OTP is unreliable OR
- you are applying as Pvt Ltd/LLP and Aadhaar flow keeps failing
- After issuance, set an annual reminder to confirm/update IEC