Import Export Code requires renewal every year during April-June period. Failing to do so will result in deactivation of the IEC license. Earlier it was not needed to renew each year.
But on 12th February, 2021, Central Government made amendments in Import Export acide related provisions under chapter 1 and 2 of Foreign Trade Policy. This amendments made updation of IEC code details mandatory for all IEC or e-IEC holders on DGFT portal each year.
All IEC holders are now legally required to update and validate their IEC Details, even if there are no changes, from April to June once every year through Online system, failing which their IEC shall be de-activated and no import or export activity will be possible. Refer Ntn.58 https://t.co/MqUfXiI7Sz
In effect from 12th February 2021, Central Government has made renewal or update of Import Export Code details mandatory on DGFT portal. It is now compulsory for all the IEC License holders have to update their IEC Code status each year during April-June Period. Even if there are no upgradation of details, same needs to be updated online. Registered AD code will turn invalid incase IEC is not updated annualy.
Therefore, if you want to run your import export business legally and smoothly then you must renew your IEC code in due time.
These amendments of Importer Exporter Code related provisions are made under Chapter 1 and 2 of Foreign Trade Policy, 2015-2020.
DGFT Notification for Import Export Code Renewal
In exercise of powers discussed by Section 3 of FT (D&R) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy, 2015-2020, as revised from time to time, the Central Government has amends the IEC related provisions under Chapter-1 and Chapter-2 of Foreign Trade Policy, 2015-2020.
Further, DGFT applying a new amendment for updating IEC (Now considered e-IEC). Now, every year from April to June even if all details of IEC remain same all existing holders have to confirmed compulsory. IEC may be de-activated if not confirmed.
New Amendments for Import Export Code
Importer Exporter Code (IEC) is obligatory for export/ import from/to India as specified in the Policy.
DGFT issues Importer Exporter Code in electronic form (e-IEC) where Application for issuance of e-IEC can be made instantly on the DGFT official Notification.
Amendment in the name of Importer-Exporter Code (IEC) as now it is Importer-Exporter Code (IEC)/(e-IEC)
Also, the application process for IEC and up-gradation in IEC is entirely online and IEC can be generated by the applicant as per the procedure detailed in the Handbook of Procedure.
Further Significant Amendments by DGFT
The following sub-paragraphs are entered under para 2.05 of Chapter-2 of Foreign Trade Policy, 2015-2020 as under:
IEC shall be updated electronically every year: An IEC holder has to assure that specifications in its IEC are updated electronically every year, during the April-June period. In cases where there are no changes in IEC details same also requires to be confirmed online.
IEC shall be de-activated, if it is not updated: An IEC shall be de-activated, if it is not updated within the specific time. An IEC therefore de-activated may be initiated, on its successful up-gradation. This would be without detriment to any other action carried for violation of any other provisions of the FTP.
IEC may be Flagged under Scrutiny: An IEC may be also be flagged for scrutiny. IEC holders are obligated to assure that any risks flagged by the system are timely declaimed, otherwise the IEC shall be deactivated.
Document required for IEC Renewal
PAN card copy of the applicant entity
Address proof of the company(Electricity Bill)
Lease/Rental Agreement if the office is rented
Cancelled cheque copy of company’s current bank account
Sale deed if the company is self-owned
Consequences of Non-Renewal of Import Export Code
Importers and Exporters having IEC Code or license needs to ensure timely renewal, as an expired Importer Exporter Code is treated the same as not having any IEC code. If you continue to run an import export business without timely renewal, your IEC code will be deactivated by DGFT. It may result in unnecessary hustle as the IEC code is required during customs, shipping and international trade. So, it is best advised to renew and update the IEC code in due time to avoid cancellation or deactivation of your code.
Import Export Code Renewal Fees
The professional fees of renewing or updating IEC code is Rs. 999.