What is IEC Code?
The Import Export Code (IEC) is a 10-digit identification number issued by the Directorate General of Foreign Trade (DGFT) to businesses or individuals involved in the import and export of goods or services in India. It is mandatory for anyone wishing to engage in cross-border trade and serves as a key requirement for customs clearances, shipments, and international transactions. Without an IEC, businesses cannot legally import or export, making it essential for trade compliance.
Procedure for IEC Code Renewal
Although the IEC is issued for a lifetime, businesses are required to update or renew their details periodically to ensure compliance with changing regulations. The renewal process involves the following steps:
- Step 1: Documentation
- To initiate the renewal process, businesses must gather all necessary documents, including the PAN card of the business entity, address proof, and bank account details. These documents must be kept ready for uploading during the application process.
- Step 2: Filing an Application
- Once the documentation is prepared, businesses must log in to the DGFT online portal and fill out the IEC renewal application form. They are required to provide updated business details, such as changes in ownership, address, or any other relevant information.
- Step 3: Renewal Application Submission
- After completing the application, the form is submitted for processing. The DGFT will verify the submitted documents and information. If everything is in order, the renewed IEC will be approved and issued to the business.
DGFT Notification for Import Export Code Renewal
Under the new DGFT notification, it is mandatory for all IEC holders to ensure their details are regularly updated. Even though the IEC is valid for a lifetime, businesses must verify and renew their details annually to remain compliant with international trade laws. Failure to update the IEC could result in the deactivation of the code, leading to complications in import-export activities.
New Amendment for Import Export Code
As per the new amendment, businesses are now required to update their IEC on an annual basis, even if no changes have occurred in the business information. This initiative is intended to keep the DGFT database up-to-date and enhance trade transparency.
Documents Required for IEC Renewal
For the renewal of the Import Export Code, the following documents are necessary:
- PAN of the Business Entity: The permanent account number (PAN) of the business entity applying for the renewal.
- Address Proof: Proof of the business’s registered address, such as utility bills or rental agreements.
- Bank Account Details of the Business: A canceled cheque or a bank certificate showing the business’s bank account details.
- Digital Signature: A digital signature certificate (DSC) for online verification and submission of the application.
- IEC Certificate: The original IEC certificate or a soft copy of it for reference during the renewal process.
Conclusion
The Import Export Code is a critical asset for businesses engaged in international trade, but it’s essential to maintain compliance by renewing and updating it periodically. The new DGFT amendments have made it mandatory to update IEC details annually, even if no changes have been made, ensuring that the business remains eligible for international trade activities. By following the simple renewal procedure and submitting the required documents, businesses can continue to operate seamlessly across borders.