Updated on July 06, 2024 11:04:38 PM
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.
The existing users can easily sign in to the platform using their login details and connect their IEC. The process involves identification which can be done by use of a DSC or Aadhaar card. Once the three-step authentication process is complete, businesses can use the web application, choose the “Update/Modify IEC” and complete the necessary details. All the necessary documents including the IEC license number, company’s PAN Card, GST certificate, etc must be in a suitable format and easily accessible when renewing the IEC license online.
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
— DGFT (@dgftindia) April 2, 2021
A 10-digit number which is issued by the Directorate General of Foreign Trade (DGFT), is known as Importer Exporter Code (IEC). This is a unique identification number used by importers and exporters to run a hassle-free business globally. IEC has lifetime validity, so the importer merchants cannot import goods without the IEC, and exporter merchants cannot enjoy the benefits from DGFT for the Export scheme, without an IEC.
The IEC code renewal process involves several steps here is a step-by-step guide to the process:
Documentation: Provide all the related documents and details in regards with the import export certificate in order to process the application for the renewal of IEC code.
Filling of application: Once all the details and documents are available, file the renewal application on the portal itself. Once the application is duly filled make the payment respectively.
Renewal approval: After the application is submitted successfully, the authorities will examine the application and after the successful verification of details and documents. DGFT will reissue or renew the existing IEC certificate for the respective applicant.
The key documents required for IEC renewal are:
The professional fees of renewing or updating IEC code is Rs. 999.
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.
The import-export license renewals are notified by the Directorate General of Foreign Trade.
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.
The following sub-paragraphs are entered under para 2.05 of Chapter-2 of Foreign Trade Policy, 2015-2020 as under:
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.
The process to apply for IEC code renewal through the DGFT portal includes updating new details as per their portal, and the documents required which include: incorporation papers/ID proof/address proof/canceled cheque/Aadhar/digital signature. Currently, there is no government fee, but professional services may cost anything between Rs. 2000 to Rs. 3500, and expedited services are available at Rs.1500 for a flat. Annual renewal is required as the system may be deactivated at any time, this would greatly affect import/export timescales. Requirements for renewal are stated in the notifications of the DGFT, some of which promise to take effect sooner while providing some exemptions on certain updates. Implementation of these regs ensures the proper business process flow and the exclusion of potential problems related to IEC deactivation.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
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Yes, For new or updated product types, it is necessary to update the IEC profile annually. If the IEC profile is not updated, this will mean that the specific profile will be deactivated.
Locate the website of the DGFT (Directorate General of Foreign Trade) of the country of your interest. Locate the IEC renewal section or the page with online services. You may have to disclose information such as your current IEC number in case you have one, your PAN number, and some other information as well.
The validity of an IEC once granted to an applicant is permanent but it is essential to renew the IEC on an annual basis to prevent the IEC from getting deactivated. The update should be made between April and June each year and in cases where the IEC is updated during this period, no fee shall be charged for the update.
Yes, An IEC number is required to be obtained for import to any part of India or export from India. This is a unique number recognized for importing and exporting during international business transactions. One cannot export or import goods without an IEC unless otherwise authorized. However, IEC is not required to export services except in certain conditions that are related to taking the benefits under Foreign Trade Policy.
Automatically, once an ‘online application’ is filled as per the above process by paying the appropriate fees and uploading the necessary documents IEC will be generated. The IEC Certificate will be issued by the DGFT and the same shall be sent through a registered E-mail ID of the applicant.
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