What is DGFT Registration and who actually need a DGFT License

I was looking into the import-export process in India and noticed that “DGFT registration” and “DGFT licence” are often used interchangeably, which can be confusing.

As I understand it, DGFT (Directorate General of Foreign Trade) issues the Importer Exporter Code (IEC). An IEC is generally required for businesses or individuals importing or exporting goods from India, unless they fall under a specific exemption. The IEC is linked to the entity’s PAN and is issued separately by DGFT.

A separate DGFT licence/authorisation can come into the picture depending on what is being imported or exported. For example, certain restricted goods may require prior authorisation, while some products can have additional regulatory requirements from other authorities.

So, broadly, an IEC is relevant to:

• Businesses importing goods into India
• Businesses exporting goods from India
• Proprietorships, partnerships, LLPs and companies involved in international trade
• Certain service exporters when an IEC is required for claiming benefits under the Foreign Trade Policy

One thing worth checking before applying is whether the particular product is freely importable/exportable or falls under a restricted category. Also, IEC holders have an annual electronic update/confirmation requirement during April–June.

For people who have recently started importing or exporting from India, what was your experience with the IEC process? Were there any product-specific licences or registrations you didn’t realise you needed?

More info: https://www.corpseed.com/service/dgft-export-import-license