IEC is also known as Importer- Exporter Code. It is a 10 digit code that has lifetime validity & plays a significant role for importers & exporters. IEC is required by those who are starting their import/ export business in the country. It is issued by the Director-General of Foreign Trade (DGFT). Renewal of IEC is mandatory to be done every year from April to June. Non- renewal will have the impact of de-activating the code.
DGFT has recently amended the relevant regulations whereby every IEC holder is required to ensure that the details of the Import Export Code are updated electronically every year from April to June.
Even if no changes in details are registered, the exact needs to be confirmed online every year within the prescribed time; otherwise, the IEC will be de-activated. A de-activated IEC can be re-initiated on its successful up-gradation. It would be without detriment to any other action carried for violation of any other provisions of the FTP. The DGFT will revoke it only after sending due notice. It provides a reasonable opportunity of being heard by the importer or exporter. An IEC may be also be indicated for scrutiny. IEC holders are required to certify that any risks indicated by the system are timely addressed; failing within the IEC shall be de-activated.
Conditions in which IEC Code is required
- When an importer has to clear his shipments from the customs, an IEC Code is essential by the customs authorities.
- The IEC Code is essential by the banks when money is sent abroad through banks by the importer.
- The IEC Code is essential by the customs port when the shipment has to be sent by the exporter.
- The IEC Code is essential by the banks when the money in foreign currency is acquired by the exporter directly in his bank account.
The following questions would be helpful for IEC:
Q1 Is there a need for renewal/ update if all details remain the same?
Yes, if all details remain the same for the existing holders, it is still mandatory for renewal/ update of IEC every year.
Q2 Is the application process online?
From the application process to the up-gradation of IEC, the entire process is online, and it is known as E- IEC.
Q3 If IEC is de-activated due to non-up gradation, can it can be activated again?
Yes, it can be updated on successful up-gradation. However, this would not be detrimental to any other action carried for violation of any other provisions of the FTP.
Q4 What is the process of revalidation of IEC?
Following is the process of revalidation of IEC:
- Register at https://www.dgft.gov.in/CP/
- Login at DGFT and link the IEC to the account created above for connecting the existing IEC; there are two authentication methods, i.e. DSC and aadhar authentication. Then, use one way from the above two and link the IEC.
- Update the IEC; this may be done by snaping on the option “Update/Modify IEC” and after that update the prefilled form.
- Analyze the filled form and sign it by using DSC or Aadhar e Sign.
- Download the updated IEC certificate this may be done by utilizing the tab “Print IEC”.
Renewal of the IEC code is compulsory for all importers and exporters. It is an entirely online process, and in most cases, approval of the application is instant. All the businesses who wish to inflate their business globally have to acquire IEC Code. Import Export Code permits the movement of goods and services without any restrictions. Obtaining the import-export license is mandatory to clear the customs and allow shipment. IEC Code helps individuals and companies to take off their business to the international market.
At MAS, we assist our clients in dealing with IEC registrations, obtaining import export licenses, renewing IEC certificates, and providing them with adequate support and guidance from our end. If you have any questions or would like to know more about Import Export Code, kindly contact us.