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Import Export Code (IEC) and Export Finance: Start Exporting with the Right Setup
Got an overseas enquiry but no IEC yet, or struggling to fund production while you wait months for export payments?
Every exporter and importer of goods in India needs an Import Export Code from the DGFT, and it must be updated every year. Export orders then need finance before shipment and while payment is awaited. GRO-MSME helps you get the IEC in place and plan export finance, insurance and documentation with your bank.
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The IEC is issued by the DGFT and export credit by banks. GRO-MSME provides guidance and application support; it is not a bank, customs broker or freight forwarder.
What Is an Import Export Code (IEC)?
The Import Export Code is a registration issued by the Directorate General of Foreign Trade (DGFT) that a business needs to import or export goods from India. It is linked to the business’s PAN, only one IEC is issued per PAN, and it is applied for online on the DGFT portal for a government fee of ₹500. The IEC does not expire, but it must be updated online every year between April and June, even if nothing has changed; otherwise it can be deactivated. Banks and customs use it for export and import transactions.
IEC at a Glance
Government fee for a new IEC on the DGFT portal
An IEC is linked to the business PAN
Annual update window, free of charge
If the annual update is missed, until it is done
Source: Directorate General of Foreign Trade, dgft.gov.in.
How to Apply for an IEC Online
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Register on the DGFT portal
Create a user account with the mobile number and email of the applicant or authorised person.
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Fill in the IEC application
Enter the PAN, business details, address, bank account and details of partners or directors.
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Upload documents and pay
Upload address proof and bank proof, and pay the ₹500 fee online.
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Sign and submit
Sign the application with a digital signature certificate or Aadhaar-based e-sign.
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Download the IEC
The IEC is usually issued online and can be downloaded from the portal.
How Can Exporters Finance Their Orders?
Export finance comes in two stages: before you ship, to make the goods, and after you ship, until the buyer pays.
| Finance | Stage | How it works |
|---|---|---|
| Packing credit (rupee) | Pre-shipment | A loan against a confirmed export order or LC to buy raw material and make the goods; repaid from export proceeds |
| Pre-shipment credit in foreign currency (PCFC) | Pre-shipment | Similar to packing credit, but in foreign currency, often at a lower cost |
| Export bill purchase, discounting or negotiation | Post-shipment | The bank advances against export documents or bills until the overseas buyer pays |
| Letter of credit (LC) support | Both | Payment is assured by the buyer’s bank if documents comply with the LC; your bank can advise or confirm it |
| Export credit insurance (ECGC) | Both | Protects the exporter against non-payment by overseas buyers for commercial and political reasons, and supports bank lending |
Banks follow RBI directions on export credit; terms and pricing vary by bank and borrower.
Tell Us About Your Export Plan
Share your product, target market and order size. GRO-MSME will call you back with the next steps.
- Free call back from GRO-MSME experts
- Eligibility check and document guidance
- Support from application to follow-up
Prefer to talk? +91-9811312259
Why Does ECGC Cover Matter for MSME Exporters?
ECGC Ltd, a Government of India enterprise, provides export credit insurance. An exporter’s policy protects against the risk that an overseas buyer does not pay, for commercial reasons such as insolvency or protracted default, or political reasons such as war or restrictions on transfers. ECGC also provides cover to banks for the export credit they extend.
For a small exporter dealing with new buyers on open-account terms, this cover can make the difference between a risk the bank will finance and one it will not. It does not replace checking your buyer; see buyer verification.
Are You Ready to Export?
Registrations in place
IEC, GST registration and, for claiming Foreign Trade Policy benefits, a Registration-cum-Membership Certificate from the relevant export promotion council. See GST registration.
Product and compliance
Destination-country standards, labelling, testing and certifications for your product.
Payment terms and risk
Advance, LC or open account, and how you will protect against non-payment.
Pricing and incentives
Export pricing that accounts for freight, duties, currency and any applicable export incentives.
What Documents Are Usually Needed?
For the IEC and for export finance. Tick what you have.
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How Can GRO-MSME Help, and What Is Outside Our Role?
GRO-MSME helps you
- Apply for or update your IEC on the DGFT portal
- Plan pre- and post-shipment finance with your bank
- Understand ECGC cover and LC terms
- Get export documentation and compliance organised
- Connect with overseas buyer programmes where available
Outside our role
- Issuing the IEC: only DGFT can
- Lending or issuing LCs: banks do
- Customs clearance or freight: licensed brokers and forwarders do
Related GRO-MSME Services
IEC and Export Finance: Frequently Asked Questions
How do I apply for an Import Export Code?
Register on the DGFT portal, fill in the IEC application with the business PAN, address, bank and ownership details, upload address and bank proof, pay the ₹500 fee and sign with a digital signature or Aadhaar e-sign. The IEC is usually issued online.
What is the fee for an IEC?
The government fee for a new IEC is ₹500, paid online on the DGFT portal. The annual update is free.
Does an IEC need to be renewed?
An IEC does not expire, but it must be updated online every year between April and June, even if nothing has changed. If it is not updated, it can be deactivated until the update is done.
Is an IEC needed for exporting services?
An IEC is generally not required for exporting services unless you want to claim benefits under the Foreign Trade Policy. It is required for importing and exporting goods, with limited exemptions.
What is packing credit?
Packing credit is a pre-shipment loan given by a bank to an exporter against a confirmed export order or letter of credit, to buy raw material and manufacture or pack the goods. It is repaid from the export proceeds.
What does ECGC cover?
ECGC provides export credit insurance that protects exporters against non-payment by overseas buyers for commercial and political reasons, and gives cover to banks that lend to exporters.
Can GRO-MSME get my IEC issued?
GRO-MSME helps you prepare and file the application on the DGFT portal through Early Grow Advisory Services, but the IEC is issued only by DGFT.
Take Your Business Beyond India
Tell us what you want to export and where, and we will guide the IEC, finance and paperwork. Local Business Se Global Business Tak — talk to GRO-MSME.
- Free call back from GRO-MSME experts
- Eligibility check and document guidance
- Support from application to follow-up
Prefer to talk? +91-9811312259