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IEC Renewal

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Online IEC code renewal - Process, Fees, Importance, DGFT Notification

 

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.

 

 

What is the IEC code?

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.

 

 

 

IEC code Renewal Process

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.

 

 

 

 

Document required for IEC Renewal

The key documents required for IEC renewal are:

  • 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
  • Digital Photograph(3*3)
  • IEC certificate

 

 

 

 

 

Import Export Code Renewal Fees

 

The professional fees of renewing or updating IEC code is Rs. 999.

 

Importance of IEC License Renewal

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

 

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.

 

New Amendments for Import Export Code

  1. Importer Exporter Code (IEC) is obligatory for export/ import from/to India as specified in the Policy.
  2. 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.
  3. Amendment in the name of Importer-Exporter Code (IEC) as now it is Importer-Exporter Code (IEC)/(e-IEC)
  4. 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:

                                  1. 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.
                                  2. 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.
                                  3. 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.

 

 

 

 

 

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.

 

 

 

 

 

 

 

Conclusion

 

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.

 

 

 

 

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