If you want to ship products internationally from your Shopify store or import goods for resale, you need an Import Export Code (IEC). The IEC is a 10-digit code issued by the Directorate General of Foreign Trade (DGFT) and is essentially the passport for your goods to enter or exit India commercially. Without an IEC, courier companies like DHL and FedEx cannot process your international shipments through customs, and you cannot receive foreign remittances legally into your business account. The good news: the IEC is free for most applicants and can be obtained in as little as 2 to 3 working days online.
Who Needs an IEC?
Any individual or business entity that exports goods commercially from India requires an IEC. This includes Shopify store owners who ship products to international customers, whether that is a single order or a thousand orders a month. Importers who bring in goods from other countries for resale also require an IEC. Notably, you do NOT need an IEC for personal use imports (goods for personal consumption, not resale) or for exports of services (software, freelancing, consulting) in most cases — service exporters deal with FEMA compliance separately. If you sell only within India on your Shopify store, you do not need an IEC.
How to Apply for an IEC Online
IEC applications are filed through the DGFT portal at dgft.gov.in. Create an account, navigate to the IEC application section, and fill in your business details including PAN (mandatory), current bank account details, and business address proof. You will need to upload your PAN card, a cancelled cheque or bank certificate, and a digital photograph. For sole proprietors, a personal PAN is used. For companies and LLPs, the entity’s PAN is required. The government fee is ₹500 for the application. Once submitted, the IEC is typically issued digitally within 2 to 3 working days. The IEC has no expiry date and requires no annual renewal — it is a lifetime code. However, you must update it if your business details change (address, bank account).
AD Code and LUT: Two More Export Requirements
Beyond the IEC, international Shopify sellers need two additional things. First, an AD Code (Authorised Dealer Code) — a code assigned by your bank that must be registered at the customs port you use for exports. Your bank (HDFC, ICICI, SBI etc.) will issue you an AD Code letter, which you then register on the ICEGATE customs portal. Courier companies need this for customs clearance. Second, if you are GST-registered and want to export without paying GST upfront (and then claiming a refund), file a Letter of Undertaking (LUT) on the GST portal each financial year. The LUT allows you to export under bond, meaning you don’t pay IGST on export shipments — the exports are zero-rated. This saves significant working capital compared to paying GST and waiting for refunds. For professional guidance on setting up your Shopify store for international sales, contact the OneOnic team.
Frequently Asked Questions
Can I use my personal PAN for the IEC as a sole proprietor?
Yes. Sole proprietors use their personal PAN card for the IEC application since a sole proprietorship does not have a separate legal identity. The IEC is issued in your name as the proprietor. If you later incorporate a company, you will need to obtain a new IEC in the company’s PAN — the sole proprietor IEC cannot be transferred.
What happens if I ship internationally without an IEC?
Shipments without an IEC will be held at customs. For small one-off personal gifts, customs officers may clear shipments, but for commercial exports, no clearance happens without a valid IEC. Courier companies like FedEx and DHL ask for the IEC number on their international shipping waybills. If you are caught repeatedly exporting without an IEC, DGFT can impose penalties. It is best to get your IEC sorted before you make your first international sale — the process takes only 2 to 3 days and costs just ₹500.
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