Introduction to EXIM

The gateway to trade

Any business wishing to import into or export from India needs an Importer-Exporter Code (IEC) — a 10-digit code issued by the Directorate General of Foreign Trade (DGFT). Without it, customs will not clear consignments.

The IEC today

The IEC is now PAN-based (the IEC equals the PAN), obtained online on the DGFT portal with minimal documents — PAN, bank details and address proof. It is a one-time registration valid for the entity's lifetime, though it must be updated/confirmed annually (electronic confirmation) to stay active.

The institutional architecture

Foreign trade is governed by the Foreign Trade (Development & Regulation) Act, administered by DGFT, with policy laid out in the Foreign Trade Policy (FTP). Customs (under CBIC) handles clearance and duties, while the RBI/FEMA framework governs the foreign-exchange side of trade.

Who needs what

Service exporters earning forex and goods exporters/importers both benefit from an IEC. Certain exempt categories (e.g., personal imports) may not need it, but for any commercial trade, the IEC is step one.