Export-Import

IEC Code vs DGFT Registration — Key Differences Explained

Quick Answer

An IEC (Import Export Code) is a 10-digit registration number issued by DGFT (Directorate General of Foreign Trade). They are not two different registrations — DGFT is the government authority, and IEC is the registration it issues. To import or export goods from India, you need an IEC, which you apply for through DGFT.

A very common confusion among new exporters and importers in India: 'Should I get an IEC or a DGFT registration?' The answer is that they are the same thing. DGFT is the government body under the Ministry of Commerce that manages India's foreign trade policy. The IEC is the specific 10-digit licence number that DGFT issues to businesses that wish to engage in international trade.

Understanding Each Term

What is DGFT?

DGFT (Directorate General of Foreign Trade) is a government body under the Ministry of Commerce and Industry that formulates and implements India's export-import policy. It does not issue a "DGFT registration" as a concept — it issues the IEC (Import Export Code) to eligible businesses.

  • CoversForeign trade policy administration, IEC issuance, EXIM schemes
  • AuthorityMinistry of Commerce and Industry, Government of India
  • ValidityN/A — DGFT is an authority, not a registration
  • CostN/A
  • TimeN/A
DGFT also administers export promotion schemes like RoDTEP, MEIS, and SEIS that benefit exporters.

What is IEC (Import Export Code)?

The Import Export Code (IEC) is a unique 10-digit identification number issued by DGFT to businesses wishing to import or export goods from India. It is a one-time, lifetime registration — no renewal required. Every customs shipment must reference the importer's or exporter's IEC.

  • CoversAll import and export of goods from/to India
  • AuthorityDGFT (Directorate General of Foreign Trade)
  • ValidityLifetime — no renewal required (annual update of bank details)
  • Cost₹500 government fee; professional assistance from ₹1,499
  • Time1–3 working days
IEC is mandatory for every shipment — customs will not process any import/export without a valid IEC.

IEC Code vs DGFT Registration — Key Differences at a Glance

AspectDGFTIEC (Import Export Code)
What it isGovernment authority (not a registration)10-digit registration number
Issued byMinistry of CommerceDGFT (on application)
Is it a licence?No — DGFT is the licencing authorityYes — IEC is the actual licence
Required for exports?You interact with DGFT to get IECYes — mandatory for all exports
Required for imports?You interact with DGFT to get IECYes — mandatory for all imports
ValidityN/ALifetime — no renewal
CostN/A₹500 govt. fee + ₹1,499 professional help

Do You Need an IEC? Here Is How to Know.

The IEC is required in specific trade scenarios. Here is when you need it:

If: You want to export goods from India
Choose: IEC is mandatory
Every outbound shipment at customs requires the exporter's IEC number. Without it, you cannot ship goods internationally.
If: You want to import goods into India
Choose: IEC is mandatory
Every inbound shipment at customs requires the importer's IEC number. Banks also need IEC for foreign currency remittances.
If: You export only services (software, consulting)
Choose: IEC not required
Service exporters (like IT companies) are generally exempt from IEC unless they also ship physical goods. However, an IEC is needed to receive foreign currency payments in some cases.
If: You sell on international e-commerce platforms (Amazon Global, Etsy)
Choose: IEC required
Cross-border e-commerce shipments are treated as exports by Indian customs. An IEC is mandatory.
If: You want to avail export promotion benefits (RoDTEP, duty drawback)
Choose: IEC + Importer-Exporter profile on DGFT portal required
All EXIM benefit schemes are linked to your IEC number on the DGFT portal.
Bottom Line

The 'IEC vs DGFT' confusion is simply a language issue — DGFT is the government department, IEC is the number they issue. What you need is an IEC. It costs ₹500 in government fees, is valid for a lifetime, and is mandatory for importing or exporting goods. If you plan to engage in international trade from India, apply for your IEC today.

Still Not Sure Which Registration You Need?

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Frequently Asked Questions — IEC Code vs DGFT Registration

Frequently Asked Questions

An IEC is valid for a lifetime — there is no renewal. However, since 2021, DGFT has mandated an annual update of IEC details (bank account, registered address, etc.) on the DGFT portal. This update is free and takes minutes but must be done every year to keep the IEC active.

Yes. Any individual, sole proprietor, partnership, LLP, company, or trust can apply for an IEC. Individual exporters/importers — such as freelancers selling handicrafts or exporters operating as sole traders — can apply using their PAN card and personal bank account.

PAN card of the business or individual, bank account details (cancelled cheque or bank certificate), Aadhaar or other address proof, and a digital photograph. For companies/LLPs, the company PAN and authorised signatory's Aadhaar are needed. GST registration is not mandatory but is recommended.

No. IEC is required only for commercial imports and exports. Personal goods carried in baggage or gifts under the duty-free limit do not require an IEC.

Yes — one IEC covers all goods and services exported or imported by your entity. If you export textiles, machinery, and software — all under the same company — one IEC covers all. However, if you have multiple separate legal entities, each needs its own IEC.

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