Import on IFC’s IEC vs Your Own IEC: DDP Benefits (2026 Guide)

Should you import on your own IEC or on your import agent’s IEC? If you buy from China on a DDP basis, importing on IFC’s IEC usually saves you money and time. IFC pays your Chinese supplier, clears the goods in India on its own IEC, and gives you a local GST invoice. Your bank never chases you for a Bill of Entry, your goods move in IFC’s consolidated container under one customs filing, and customs queries are answered by IFC, not by you.

This is the question we hear almost every day: “I already have an IEC. Why should I import on your IEC? I want to pay my supplier myself. Why should IFC pay on my behalf?” This guide answers it honestly, with the real benefits, how the money and paperwork move, and the cases where your own IEC is still the better choice.

What does “import on IFC’s IEC” mean in a DDP shipment?

DDP (Delivered Duty Paid) means one company takes care of everything from your supplier’s factory in China to your door in India: pickup, export from China, sea or air freight, Indian customs duty, clearance and local delivery. If you are new to the term, read our guide on how DDP shipping from China to India works.

In a DDP shipment on IFC’s IEC, the flow is simple:

1. You choose the product and the supplier (or IFC helps you find one).
2. IFC pays the Chinese supplier from its company account, as the buyer of the goods.
3. The goods are collected at IFC’s China warehouse and loaded with other buyers’ goods in a consolidated container or air shipment.
4. IFC is the importer on record. It files the Bill of Entry on its IEC and pays the customs duty and IGST.
5. IFC delivers the goods to your door and raises a local GST invoice to your business.

For you, it works like buying from a supplier in India. You pay one Indian company in rupees, you receive the goods with a GST bill, and the import paperwork stays with IFC.

I have my own IEC. Why should I import on IFC’s IEC?

Having an IEC lets you import. It does not make importing easy. Every shipment on your own IEC brings a chain of work: the foreign payment, bank documents, port registration, a CHA, a Bill of Entry, customs queries, duty payment and then follow-ups from your bank. For small and mid-size shipments that come in LCL, this work often costs more than the duty itself. Here are the four main reasons our customers switch to importing on IFC’s IEC.

1. No KYC and remittance follow-ups from your bank

When you pay a Chinese supplier yourself, your bank (the AD bank) sends the money abroad as an import remittance. That payment is recorded in the RBI’s Import Data Processing and Monitoring System (IDPMS). The bank must then match it with proof that the goods actually arrived in India, which is the Bill of Entry. For an advance payment, the importer is expected to submit this evidence of import, usually within three months.

In practice this means KYC forms, a purpose code, invoices and declarations for every payment, and then emails and calls from the bank until the Bill of Entry is submitted and the entry is closed. If the shipment is delayed, split, or the supplier sends fewer goods, closing the entry gets harder. When IFC pays the supplier, the remittance and the Bill of Entry are both in IFC’s name, so this whole cycle is IFC’s job, not yours.

2. Lower cost because IFC clears one large consolidated shipment

Most small and medium buyers ship LCL (less than a container load). If each buyer imports on their own IEC, every buyer’s goods need their own Bill of Entry, their own CHA charges, their own delivery order and documentation fees, and often their own examination at the port. These fixed costs are almost the same for a 1 CBM shipment as for a 10 CBM shipment, so they hurt small buyers the most.

IFC loads mixed containers from China every day. When the goods come in IFC’s bulk consolidated container, IFC clears the whole container as one large shipment on its IEC. The fixed clearing costs are shared across many buyers, so your cost per kg or per CBM comes down. You pay one DDP rate instead of a list of separate charges.

3. IFC handles customs queries, so you are not disturbed

Indian customs can raise questions on any shipment: the HS code, the declared value, a missing brand or model on the invoice, a test report, a licence, or the packing list. When the shipment is on your IEC, these questions come to you, often with a short deadline, and you have to collect answers from your supplier in China.

On IFC’s IEC, IFC is the importer, so customs speaks to IFC. Our team already holds the supplier invoice, packing list and product details, and our offices in Guangzhou and Yiwu can reach the supplier directly. Small queries are closed without a single call to you.

4. Faster clearance

Clearance time is mostly lost waiting for answers: the CHA waits for the importer, the importer waits for the supplier, and the goods wait at the port and pay storage. When one team holds the documents, talks to the supplier and replies to customs, queries are answered the same day in most cases. Faster clearance also means less port storage and demurrage risk.

I want to pay my supplier myself. Why should IFC pay on my behalf?

This is a fair question, and it comes from a good place: you want control over your money. Here is why IFC paying the supplier is part of the DDP model.

• The payer and the importer must match. Customs, the bank and GST all expect the company that pays the foreign supplier to be the company named on the invoice and the Bill of Entry. If you pay the supplier but IFC imports the goods, the paper trail breaks: your bank has a remittance with no Bill of Entry, and IFC has a Bill of Entry with no payment.
• The GST invoice depends on it. IFC can sell you the goods on a local GST invoice only if IFC bought and imported them. That is what lets you claim input tax credit like on any Indian purchase.
• You still decide everything. You choose the supplier, approve the price and confirm the order. IFC can also check the supplier before money is sent; see our guide on how to verify a China import agent in India.
• You pay in rupees to an Indian company. No foreign remittance from your account, no exchange paperwork and no SWIFT charges on your side.

Before you pay any agent, ask for their GST number, company details and a clear quote. Our article on China import service fees explains what a fair quote should include.

What is document-free import?

“Document-free import” means you import goods from China without handling any import documents yourself. You do not need your own IEC, you do not file a Bill of Entry, you do not register with the port or customs, and you do not send foreign remittance papers to your bank. IFC, as the importer on record, takes care of all of it. You receive your goods and a GST invoice.

Documents you do not need to manage on IFC’s IEC:

• Import Export Code (IEC) from DGFT
• AD code registration at each port and ICEGATE registration (icegate.gov.in)
• Bill of Entry filing and customs duty payment
• Bank remittance forms, KYC and IDPMS closure
• CHA appointment and authorisation letters

This is why many first-time importers start with IFC. Read more in our guide on how to import from China without an IEC.

Own IEC vs IFC’s IEC: side-by-side comparison

Point	Import on your own IEC	DDP on IFC’s IEC
Who pays the Chinese supplier	You, by foreign remittance	IFC, from its company account
Bank KYC and IDPMS follow-ups	Your job for every payment	Handled by IFC
Bill of Entry	Filed separately for your shipment	One filing for IFC’s consolidated container
CHA, DO and port fixed charges	Paid in full by you	Shared across many buyers in the container
Customs queries	Come to you	Answered by IFC
Invoice you receive	Supplier’s foreign invoice; you claim IGST paid at customs	Local GST invoice from IFC; you claim ITC
Payment currency	USD or RMB	Indian rupees
Best for	Large, regular FCL imports with your own team	LCL and air shipments, first-time and growing importers

When is importing on your own IEC better?

We want you to choose the right model, not just ours. Your own IEC can be the better choice when:

• You import full containers (FCL) regularly and already have an in-house import team and a CHA.
• A licence or registration must be in your company’s name for the product, for example when you are the brand owner of a BIS-registered product.
• You need your own import records, for government tenders, export incentive schemes or bank credit limits.
• Your buyer or your auditor requires you to be the importer on record.

Even then, IFC can still help with sourcing, supplier checks, quality inspection, freight and customs clearance on your IEC. Many customers use both: their own IEC for big container orders and IFC’s DDP service for small, mixed or trial orders.

How does IFC run a DDP shipment on its IEC?

IFC (Imports From China) has been helping Indian businesses import from China for more than 20 years, since 2004. We have our own offices in Guangzhou and Yiwu with English-speaking staff and translators, and we load mixed containers and air cargo every day.

1. Quote: share the product, supplier details, weight and CBM. You get one DDP rate up to your door.
2. Supplier payment: you pay IFC in rupees; IFC pays the supplier in China.
3. Collection and loading: goods arrive at IFC’s China warehouse, are checked and loaded in the next consolidated shipment.
4. Customs clearance in India: IFC files the Bill of Entry on its IEC, pays duty and handles any customs query.
5. Delivery and GST invoice: goods are delivered to your city, including Delhi NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Pune and Ahmedabad, with a GST invoice.

Importing on IFC’s IEC means one partner, one price and no import paperwork on your side. If you already have an IEC, keep it for the shipments where it helps, and let IFC handle the rest.

Get your real landed cost: enter your product, weight and CBM in the IFC shipment calculator, or call IFC on +91 98116 91631 for a door-to-door DDP quote from China to your city.

Frequently asked questions

I have an IEC. Can I still use IFC’s DDP service on IFC’s IEC?

Yes. Having an IEC does not stop you from buying on a DDP basis. Many IEC holders use IFC’s IEC for small or mixed LCL shipments and their own IEC for full containers.

Will I get input tax credit if I import on IFC’s IEC?

IFC sells the goods to you on a local GST invoice. A GST-registered business can claim input tax credit on that invoice, subject to normal GST rules.

Why can’t I pay the supplier and still use IFC’s IEC?

The company that pays the foreign supplier should be the importer on the Bill of Entry. If you pay but IFC imports, your bank will have a remittance with no matching Bill of Entry, and the GST invoice chain breaks. That is why IFC pays the supplier in a DDP shipment on its IEC.

Is importing on an agent’s IEC legal in India?

Yes, when it is done properly: the agent buys the goods, imports them on its own IEC, pays the duty and sells them to you on a GST invoice. Always check the agent’s GST registration and company details before paying.

Is it cheaper to import on IFC’s IEC?

For LCL and air shipments it usually is, because the fixed clearing costs of a Bill of Entry, CHA and port charges are shared across the whole consolidated container. For regular full containers, compare both options with a quote.

What is document-free import?

It means importing from China without handling IEC, Bill of Entry, customs registration or bank remittance papers yourself. The importer on record, here IFC, manages all documents, and you receive the goods with a GST invoice.