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Know the Amendments Made by DGFT in IEC Provisions

calendar12 Jun, 2021
timeReading Time: 4 Minutes
Amendments Made by DGFT in IEC Provisions

DGFT of ten brings some amendments to FTP’s policies for improving the compliance requisites and global trade. With that said, this apex government institution has recently come up with yet another important announcement for IEC holders. In this write-up, you will come to know about amendments made by the Directorate General of Foreign Trade, i.e. DGFT in IEC provisions.

What are the Changes Introduced by DGFT in IEC Provisions?

All importers and exporter under IEC registration are now mandated to verify and update their IEC details even if there no changes exist, from April to June every year via a web-based portal. Any non-conformity to this requirement could lead to the seizure of IEC, which eventually dissolves the right of owners to export and import.

Directorate General of Foreign Trade in association with the Ministry of Commerce and industry[1] has inculcated new provisions and amended Chapter-1 and Chapter-2 of FTP, 2015-2020. As per the latest amendment, an IEC holder is obligated to update the details in IEC every year, during the April-June period. Apart from that, these individuals are also supposed to report the nil changes in IEC to keep authority informed about your status.

As we mentioned, the IEC would be activated in a state of non-conformity with the above requirements. However, post-deactivation, the IEC can be re-activated through the standard procedure if it isn’t breaching the rest of the FTP’s guidelines. The application process regarding IEC’s issuance and updation is completely online, and the same can be availed in light of the procedure cited in the Handbook of Procedure.

Depiction of the notification issued by DGFT regarding amendment of IEC provisions

Here’s whatthe original notification says about the changes made by DGFT in IEC provisions.

In view of rights bestowed by Section 3 of FT (D&R) Act, 1992, along with paragraph 1.02 and 2.01 of the FTP, 2015-20, as amended periodically, the Central Government, therefore, amend the IEC provisions under Chapter-1 and Chapter-2 of FTP, 2015-20.

Read our article:What is the Complete Procedure to Check the IEC Application Status?

Following paragraphs of FTP, 2015-20 are amended as below:

Existing Provision Amended Provision
1.11 Issue of Electronic- Importer Exporter Code 1.11 e-IEC (Electronic-Importer Exporter Code)
(a) Importer Exporter Code is compulsory for export/import from/to India as cited in paragraph 2.05 of this FTP Policy. DGFT issues IEC in electronic form (e- IEC). To obtain e-IEC an application can be made on the DGFT portal i.e. (http// Applicant can furnish the documents & pay the standard fee via Net banking. The applicant shall, however, furnish the application enclosing his/her digital signature. Importer Exporter Code is compulsory for export/import from/to India as cited in paragraph 2.05 of this FTP Policy.  DGFT issues IEC in electronic form (e-IEC). To obtain e-IEC an application can be made on the DGFT portal i.e. (http//
2.05 Importer-Exporter Code (IEC) 2.05 Importer-Exporter Code (IEC)/(e-IEC)
(c) Application process for IEC is completely online and IEC can be generated by the applicant as per procedure detailed in the Handbook of Procedure (c) Application process for IEC and updation in IEC is completely online and IEC can be generated by applicant as per the  procedure detailed in the Handbook of Procedure

The given sub-paragraphs are introduced under para 2.05 of Chapter-2 of FTP, 2015-2020 as under::

FTP Paragraph no. Text added (New)
2.05(d) An IEC holder must ensure that information in its Import Export Code is updated electronically per year, fromApril to June. Even the nil changes are supposed to be confirmed online without any delay.
2.05(e) An IEC shall confront de-activation if it is found outdated after the prescribed time limit. The deactivated Import Export Code may be re-activated after successful updation. However, this has nothing to take with the action taken for contravention of any other FTP’s norm.
2.05(f)   An IEC may undergo scrutiny as per the authority’s direction. Thus, IEC holders are supposed to address loopholes promptly; failing to which could cease the IEC validity.

4. The sub paras 1.11(b), 1.11(c) & 1.11(d) of FTP, 2015-2020 has been deleted.

Effect of this notification

IEC related norms present in Chapter-1 and Chapter-2 of FTP, 2015-2020 are amended to serve the following purposes

  • Strengthen compliance’sdegree for better control
  • Consistent updation of IEC holders’ data, thereby ensuring improved transparency.
  • Compel exporters and importers to ensure adherence tonew FTP norms.
  • Better due diligence of business activities.

Some light on the latest announcementsbeing made by DGFT

1: Restriction on the exportation of Amphotericin-B injections (Dated- 1st June 2021)

The Director-General of Foreign Trade i.e. DGFT has imposed restrictions on the export of Amphotericin-B injections which is being tagged with Ex 30049029, Ex 30049099 under the ITCHS Code. It is used for treating black fungus disease.The decisions were announced owing to the escalating cases of Mucormycosis, mainly affecting Covid affected patients, and acute shortage of Amphotericin-B injection.

2: Waiver of restriction on the importation of oxygen concentrator  for personal use (Dated- 30-April-2021)

DGDT amends the Existing Para 2.25 of FTP, 2015-2020. As per the revised para, the importation of goods, including those from e-commerce platforms, via post, where Custom clearance is mandated, is banned except for life-saving drugs and oxygen concentrators. The exemption regarding the oxygen concentrator will continue to remain active till 31st July 2021.


DGFT’s decision to amend IEC provisions seems to be a cautious one. It shows that authority is concerned about IEC holder(s) roles in terms of information sharing and compliance adherence. These decisions will alert the exporters and importers because of the repercussions introduced by DGFT in FTP.  The changes introduced by the DGFT in IEC provisions suggest that information sharing has now become an absolute mandate for the IEC holders.

Read our article:IEC Registration for Small Business: All you Need to Know

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