Import Export Code Renewal
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Import Export Code Renewal - Process
An Importer-Exporter Code (IEC) is mandatory for anyone involved in importing or exporting goods to or from India, except for service exports unless incentives are received under the Foreign Trade Policy.
Since the implementation of GST, the IEC issued is aligned with the PAN of the firm. However, the IEC is independently issued by DGFT upon application. Entities eligible to apply for an IEC include sole proprietorships, partnerships, LLPs, limited companies, trusts, HUFs, and societies. The Import Export Code must be renewed annually between April and June. Failure to do so will result in the deactivation of the IEC license, a change from the previous non-requirement for annual renewal.
On February 12, 2021, the Central Government amended the rules under Chapters 1 and 2 of the Foreign Trade Policy concerning the Import-Export Code. This amendment mandates annual updates of IEC details on the DGFT portal for all IEC or e-IEC holders.
According to DGFT, every year between April and June, all IEC holders must update and validate their IEC details online, even if there are no changes, to prevent deactivation and ensure continued import-export operations.
Importance of IEC License Renewal
The Central Government’s amendment on February 12, 2021, mandates the renewal or modification of Import Export Code data on the DGFT portal. It is essential for legal and efficient import-export operations to renew your IEC code on time.
These amendments are part of Chapters 1 and 2 of the Foreign Trade Policy, 2015-2020.
DGFT Notification for Import Export Code Renewal
The Central Government has amended IEC-related provisions under Chapters 1 and 2 of the Foreign Trade Policy, 2015-2020, as amended from time to time, under powers conferred by Section 3 of the FT (D&R) Act, 1992, read with paragraphs 1.02 and 2.01 of the Foreign Trade Policy, 2015-2020, as amended from time to time.
Additionally, DGFT has introduced a new amendment mandating the update of IEC (now considered e-IEC). Every year between April and June, all existing holders must confirm their status online, even if no changes have occurred, to prevent deactivation.
New Amendments for Import Export Code
- As per the Policy, Importer Exporter Code (IEC) is mandatory for trade with India.
- DGFT issues Importer Exporter Codes (e-IEC), and applications can be promptly made via DGFT’s official notification.
- The application and upgrade processes for IEC are online, following procedures outlined in the Handbook of Procedure.
- DGFT has implemented significant changes.
Under Chapter 2, paragraph 2.05 of the Foreign Trade Policy, 2015-2020, it is stipulated that:
- Annually, between April and June,
- IEC holders must ensure their IEC details are updated electronically.
- If no changes occur, confirmation online is still required.
- Failure to update may lead to deactivation.
- Reactivation is possible upon successful upgrade, in addition to penalties for FTP non-compliance.
- IECs may be flagged for inspection.
- Prompt declaration of identified risks is necessary to avoid cancellation.
How TrueConnect Helps with IEC Renewal
- Technology enables significant time and cost savings.
- Why spend time traveling to physically check documents when most data can be accessed remotely, such as via a cloud platform? This approach reduces commuting expenses and time significantly. Additionally, widely used platforms like Skype or Zoom can facilitate interviews and observations.
- Avoidance of travel to challenging locations.
- Remote audits eliminate the need to visit difficult-to-reach locations due to remoteness or stringent entry requirements, including visas for international audits.
- Elimination of audit-related logistics.
- Organizations conducting remote audits typically avoid the logistics of booking conference rooms, arranging team accommodations, disrupting regular workflows, and other onsite inconveniences.
- Enhanced productivity of auditing teams.
- Working from home offices, audit teams access necessary resources like high-speed internet, monitors, and printers, enhancing e-audit productivity compared to onsite audits.
Consequences of Import Export Code Non-Renewal
- IEC holders must ensure timely renewal to avoid operational disruptions.
- An expired or non-renewed IEC code is equivalent to not having one, potentially halting customs, shipping, and international trade activities.
- To prevent deactivation or cancellation, it is crucial to renew and update your IEC promptly.
FAQs
Any Importer or Exporter intending to engage in importing or exporting goods or services requires an Importer-Exporter Code (IEC). It is a mandatory license used during the import or export process.
Yes, the IEC must be updated annually electronically. Between April and June each year, IEC holders must ensure that their IEC details are electronically updated to maintain compliance.
Failure to renew the IEC within the specified timeframe will result in the deactivation of the IEC license. However, upon successful renewal, a deactivated IEC can be reactivated.
You can check the status of your Import Export Code (IEC) application using the Online Application IEC facility on the DGFT website. Visit the DGFT website, navigate to Online Application > IEC > Know your IEC Status.
