DGFT registration, AD code linking and the annual update that keeps your IEC from being deactivated.
The Import Export Code is a ten-digit identifier issued by the Directorate General of Foreign Trade. No consignment clears customs and no bank processes an inward or outward trade remittance without it. It is issued electronically, has lifetime validity, and is now identical to the PAN of the entity — but it must be updated every year or it is deactivated, which is where most Chennai exporters get caught.
Who needs one
Any business importing goods into India or exporting goods out of it
Service exporters who want to claim benefits under the Foreign Trade Policy, or whose bank asks for it on inward remittance
E-commerce sellers shipping abroad, including through courier mode
Individuals importing goods for personal use, and government departments, are exempt. A service exporter receiving payment purely as professional fees may not strictly need an IEC, but banks increasingly ask for one, and it costs little to hold.
Documents required
Item
Detail
PAN
Of the entity — the IEC is issued in the same number
Identity and address
Aadhaar or passport of the proprietor, partner or director for e-signing
Address proof of premises
Sale deed, lease deed, rent agreement, or a recent electricity, telephone or mobile bill in the entity's name; a No Objection Certificate from the owner if the premises are not in the entity's name
Bank details
Cancelled cheque or a banker's certificate for the current account of the entity
Constitution proof
Partnership deed, certificate of incorporation, or registration certificate as applicable
Digital signature
Class 3 DSC or Aadhaar-based e-sign of the authorised signatory
Process
DGFT portal registration. An account is created for the entity with the authorised signatory's mobile and email, both verified by OTP.
ANF-2A filed. Entity details, branch addresses, directors or partners, bank particulars and the preferred sector are entered and the documents uploaded.
Fee and signature. The application fee is paid online and the form signed with DSC or Aadhaar e-sign.
IEC issued. Generally granted electronically within a few working days; the certificate is downloadable from the portal.
AD code registration. Separately, the Authorised Dealer code from your bank must be registered at each customs port you will use — Chennai Sea, Chennai Air Cargo or the relevant ICD. Without it, shipping bills cannot be filed.
The annual update is mandatory, not optional. Every IEC must be updated online between April and June each year, even when nothing has changed. An IEC that is not updated is deactivated, and a deactivated IEC stops consignments at customs. Reactivation is possible on filing the update, but not before your container is already sitting at the port.
What else an exporter in Chennai needs
GST registration and LUT. Exports are zero-rated. Filing a Letter of Undertaking lets you export without paying IGST and then claiming refund — see GST annual return and LUT.
RCMC from the relevant Export Promotion Council if you intend to claim benefits under the Foreign Trade Policy.
Product-specific licences — a Central FSSAI licence for food, and any regulatory clearance the commodity requires.
FEMA reporting on realisation of export proceeds, and reporting of any foreign investment or overseas investment — see FDI, ODI and FLA filing.
We handle the IEC, the modifications when a director or address changes, and the annual update as a standing item so it does not lapse.
Frequently asked questions
For the life of the entity. There is no renewal fee. What there is, however, is a compulsory annual update between April and June each year. Skip it and the IEC is deactivated until you file the update.
No. The IEC is the entity's PAN, so each legal entity has exactly one IEC. Branches and additional places of business are added to the same IEC as branch addresses rather than obtaining separate codes.
Yes. The IEC application requires a cancelled cheque or banker's certificate for a bank account of the entity, and trade remittances have to flow through it. A savings account in a proprietor's personal name will not be accepted by the bank for trade transactions.
The Authorised Dealer code identifies the bank branch through which your foreign exchange transactions are routed. It has to be registered separately at every customs port from which you ship. Until it is registered at that port, the shipping bill cannot be generated there, which is why first-time exporters find their consignment stuck despite holding a valid IEC.