How Much Does an Import and Export License Cost in India?
What Is an Import and Export License (IEC)?
The IEC, or Import and Export License, is a 10-digit code granted by the DGFT.
It is the most critical and initial requirement of any person who wishes to begin global trade.
In the absence of an IEC, you will not be able to import goods, export goods, or get foreign payments lawfully.
Who Needs an IEC?
- Are new entrepreneurs with a plan to start an international trading business.
- Manufacturers that are venturing into foreign markets.
- Traders & wholesalers
- E-commerce exporters
- Service exporters (consulting, IT, freelancers paid in foreign currency)
- Companies and partnerships
- Persons who import as commercial users.
IC has simple documents, and even when you are a total beginner, you can apply.
What is the Cost of an Import and Export License in India?
This is the best part as the government charge for the Import and Export License is minimal.
Official Government Fees
| Type of Fee | Cost |
|---|---|
| DGFT Application Fee | ₹500 |
| Digital Signature (Not Mandatory but advisable) | ₹500 - ₹1500 |
| Professional Consultant Fees (Optional) | ₹500 - ₹2000 |
India has a high total cost of an import and export license
If you apply on your own → ₹500 only
In case you hire a consultant → ₹1000 to ₹2500 (Approx)
Why do people so commonly get confused over the price?
A lot of novices believe that the import export license is costly and burdensome. The reality is, however, that IEC is among the cheapest business licenses in India.
The misunderstanding occurs as a result of:
- Some agents are very expensive.
- Misinformed people are not aware that the fee imposed by DGFT is as low as 500 rupees.
- They co-brand IEC with other licenses such as FSSAI, GST, or APEDA.
But the truth is simple: IEC = ₹500 only.
Hidden Costs You Should Know About
The government charge is pegged at 500 rupees. However, depending on the type of business you are in, there might be extra costs involved.
1. Digital Signature Certificate (DSC) - Optional
Cost: ₹500 – ₹1500
DGFT can be logged in using either Aadhaar or DSC, although DSC is a safer option with business owners.
2. Business Registration
Not compulsory, because:
Even individuals may apply to the IEC with the help of their personal PAN.
However, when you want to run professionally, you can have:
- GST Registration (₹0-2000 depending on state)
- MSME Registration (Free)
3. Product-Specific licences (Only when required)
They do not have anything to do with IEC, but most new business ventures need them based on their trade:
- FSSAI License for food items
- APEDA Export registration of agro products.
- PHO Certificates: Pharma, chemicals, cosmetics.
- Fabric Certification Textile Committee.
All of them vary in terms of fees, which are not obligatory for all people.
4. Bank Charges
To open an exporter account, a bank can demand:
Between ₹1000 and ₹2500 (depends on bank and account type).
Documents Required for Import and Export License
The best part? The documentation is very easy.
Required Documents
- PAN Card (Business or Person)
- Aadhaar Card
- Business Name & Address
- Bank Statement / Bank Cancelled Cheque.
- Email ID
- Phone Number
That's all!
No inspection, no visiting office, and no complex paperwork.
All this is done online, one hundred percent via the DGFT website.
How to Apply for an Import and Export License (IEC) Online
The following is a basic, easy-to-follow tips guide on how to apply to your IEC.
Application Process: Step by Step.
1: Visit the DGFT Portal
Register on the official DGFT site and create your log-in ID.
2: Complete the IEC Application Form.
Enter details such as:
- PAN number
- Business details
- Address
- Bank account details
3: Upload the Necessary Documents.
Enter scanned versions of documents in PDF or JPG.
4: Application Fee.
Make the payment of the official fee of ₹500 online.
5: Accept the IEC Certificate.
You will get the Import and Export License in your mailbox in 1-2 days after approval.
How Long Does It Take?
The entire process takes:
- 10 minutes to apply
- 24–48 hours for approval
Why Should You Get Your Import and Export License Early?
The majority of people wait until they get a buyer or supplier. By the way, getting your IEC provides you with a number of advantages.
Advantages of Early IEC registration.
It is possible to open an export current account.
It is possible to sign up on such B2B sites as Alibaba, Indiamart Export, and TradeIndia.
Assists with GST refund claims of exporters.
It is possible to begin the market research and documentation.
Buyers take you seriously.
IEC acts as the initial step to establishing your brand in international trade.
Mistakes Make While Applying for Import and Export License
1. Incorporation of the wrong business name.
Ensure that your business name is identical on:
- PAN
- Bank account
- DGFT application
2. Putting into practice Without Understanding Product Requirements.
IEC is generic; however, your product may require additional certifications.
3: Not Updating the IEC Regularly
IEC should be renewed annually- at no cost.
4: Agent Hiring (Agents who overcharge).
Other agents take ₹5000-8000, which is not necessary. Never neglect to check the official DGFT fee.
Does IEC Compel all Importers and Exporters in India?
Yes, when you want to commercially import and/or export.
There are, however, exemptions such as:
- Personal use imports
- Government departments
- Some charity agencies.
However, with business owners, IEC is a hundred percent compulsory.
Begin your import-export business.
The process of obtaining an Import and Export License in India is easy, quick, and cheap. You have ₹500 to open up to 200 or more countries to do business.
You have a new trading business to begin, you have an already existing manufacturing unit that you wish to expand, or you just wish to venture into the international markets- IEC is the first step you have to climb on to.
And in case you happen to be from Surat, you have a great advantage already. Surat is a trading center of Indian textiles, diamonds, chemicals, FMCG products, etc. Each year, hundreds of exporters start their business here.
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