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Tax & Compliance

Import Export Code: When You Need One and How to Keep It Active

AK

Akash Kore

· 3 min read

✓Fact-Checked & Verified · FY 2026-27

The Import Export Code was made permanent some years ago, which led many holders to forget it entirely. It now carries an annual confirmation requirement, and a code that is not confirmed is deactivated — usually discovered at a port.

★Quick Summary & Key Takeaways
  • ✓Required for most import and export of goods, and for receiving certain foreign remittances.
  • ✓Issued by DGFT, PAN-based, with lifetime validity.
  • ✓Must be updated electronically every year between April and June even if unchanged.
  • ✓Failure to update deactivates the code.

Who needs one

Any person importing or exporting goods from India, with limited exemptions for personal use and for certain government departments. Since GST, the IEC for most purposes is the PAN itself, issued as an IEC by DGFT.

Service exporters do not strictly require an IEC unless claiming benefits under the Foreign Trade Policy, though banks frequently ask for one when processing inward remittances.

The annual update

Every IEC holder must update their details electronically between April and June each year, even where nothing has changed. An IEC not updated within the period is deactivated.

Reactivation is possible on updating, without penalty, but a deactivated code blocks customs clearance in the meantime — which is how most holders learn about the requirement.

What it connects to

The IEC links to your customs registration, your authorised dealer bank for foreign exchange, and the Foreign Trade Policy benefit schemes. It is quoted on shipping bills and bills of entry.

For GST purposes, exports are zero-rated and the shipping bill functions as the refund application for goods exported on payment of integrated tax, which requires the IEC and bank details to be correctly registered with customs.

Frequently asked questions

### Does an IEC expire?

It has lifetime validity but must be updated electronically every year between April and June, even if no details have changed. An IEC that is not updated is deactivated until the update is filed.

### Do service exporters need an IEC?

Not strictly, unless claiming benefits under the Foreign Trade Policy. Many banks nonetheless ask for one when processing inward remittances for services, so obtaining it is often simpler than arguing the point.

### Is the IEC the same as my PAN?

Since 2017 the IEC is PAN-based, and for most holders the IEC number is the PAN. DGFT issues it against the PAN, and a single PAN can have only one IEC.

Frequently Asked Questions

Does an IEC expire?

It has lifetime validity but must be updated electronically every year between April and June, even if no details have changed. An IEC that is not updated is deactivated until the update is filed.

Do service exporters need an IEC?

Not strictly, unless claiming benefits under the Foreign Trade Policy. Many banks nonetheless ask for one when processing inward remittances for services, so obtaining it is often simpler than arguing the point.

Is the IEC the same as my PAN?

Since 2017 the IEC is PAN-based, and for most holders the IEC number is the PAN. DGFT issues it against the PAN, and a single PAN can have only one IEC.

AK

Akash Kore

Founder & Product Architect

Architecting business document operating systems and automated billing workflows for Indian SMBs, agencies, and enterprises.

🛡️ Reviewed by Dyopact Legal & Tax Compliance Desk·Statutory reference: Central Board of Indirect Taxes & Customs (CBIC) & Income Tax Dept
Statutory Legal & Tax Disclaimer: This article is published for informational and operational enablement purposes under Indian commercial and indirect tax laws. It does not constitute formal legal opinion or chartered accountancy counsel. Tax policies, interest formulas, and notification thresholds are governed by the statutory circulars of the GST Council, CBIC, and Ministry of Micro, Small and Medium Enterprises. Consult a certified Chartered Accountant (CA) or commercial legal advocate for transaction-specific advisory.