Per a notification released in February 2021 by the Ministry of Commerce & Industry:
All IEC holders must update and validate their IEC details once a year between April and June.
In India, the Import-Export Code (IEC) is a 10-digit identification number issued by the Director General of Foreign Trade (DGFT), Department of Commerce, Government of India. Any Indian citizen looking to start an import-export businesses is required to obtain this code. Without it, it is not possible to deal with export or import business. The IEC code can be obtained from the DGFT’s website.
In February 2021, the DGFT issued a notification stating that all IEC holders are now required to update and validate their IEC details once a year. This can be done online, and anytime between April and June.
It’s important to note that IEC holders must complete this step every year even if there are no changes. Failure to do within the prescribed time limit will lead to IEC being de-activated. If this happens, the Exporter/Importer will not be able to operate their business.
Notification No: 58/2015-2020
Issued on: 12th February 2021
Policy Name: Foreign Trade Policy, 2015-2020
Amendments made to: Chapter 1 and Chapter 2
| Amended text | Inserted text |
| 1.11 e-IEC (Electronic-Importer Exporter Code): Importer Exporter Code (IEC) is mandatory for export/import from/to India as detailed in paragraph 2.05 of this Policy. DGFT issues Importer Exporter Code in electronic form (e-IEC). Application for issuance of e-IEC can be made directly on the DGFT web portal (https//www. dgft.gov.in). | 2.05(d): An IEC holder has to ensure that details in its IEC is updated electronically every year, during April-June period. In cases where there are no changes in IEC details same also needs to be confirmed online. |
| 2.05 Importer-Exporter Code (IEC)/(e-IEC): (c) Application process for IEC and updation in IEC is completely online and IEC can be generated by the applicant as per the procedure detailed in the Handbook of Procedure | 2.05(e): An IEC shall be de-activated, if it is not updated within the prescribed time. IEC so de-activated may be activated, on its successful updation. This would however be without prejudice to any other action taken for violation of any other provisions of the FTP. |
| Deleted sub paras 1.11(b), 1.11(c) and 1.11(d) | 2.05(f): An IEC may be also be flagged for scrutiny. IEC holder(s) are required to that any risks flagged by the system is timely addressed; failing which the IEC shall be deactivated. |
Disclaimer: The information is provided purely for informational and educational purposes only. It should not be misconstrued as legal advice. Taxguru cannot take any responsibility for the result or consequences of any attempt to use or adopt any of the information presented herein.
Mytaxguru Consulting Services provides affordable compliance services that enable Indian firms to start, manage and grow their business. We also educate companies about India’s legal and regulatory requirements, and support them at every stage to ensure complete compliance and long-term growth.
Contact Mytaxguru to complete your compliance responsibilities without delay!
Phone: 022-2308-0666, +91-9224618250
Email: info@mytaxguru.net