Every Export-import business in India must have IEC (Import Export Code) registration in place before commencing the operation. It is ten digit code that enables customs to identify the importer or exporter. Businesses that deal with cross-border trade cannot exist without this registration. Before 12 Feb 2021, IEC was granted by the Directorate General of Foreign Trade with lifetime validity. But things changed when the authority decided to limit its validity to one year. This write-up will let you know everything about the IEC renewal and various provisions thereof.
What is Import Export Code (IEC)?
The import-export code (IEC) is nothing but an export-import permit that customs require for port clearance. IEC enables shipment authorities to instantly fetch the detail of the consignment along with the parties involved. One can visit the online portal of the Directorate General Foreign Trade (DGFT) to apply for this registration.
In view of Chapters 1 and 2 of Foreign Trade Policy, every exporter or importer must renew their IEC registration online before the deadline (April-June) arrives. Delayed or non-renewal can lead to cancellation or temporary suspension of IEC registration.
Updates On IEC Renewal And Why Is It Important?
The IEC renewal is vital for the hassle-free operation of any registered EXIM business in India. It must get renewed every 12 months or else penalties would come into effect.
Given notification 58, published on Feb 2021, every exporter or importer must renew the IEC registration around April to May every year. The IEC renewal is mandatory regardless of whether it has been subjected to changes or not.
12th Feb Amendment Notice Ensured the Inculcation of the Following Clauses That Are Vital For EXIM Business
- IEC, the Importer and Exporter Code is now being recognized as E-IEC. The DGFT has rolled out the electronic version of the IEC code to speed-up legal processing. The DGFT portal entails the application for the same.
- There is no offline mode to renew the IEC certificate. The online IEC renewal process is listed below.
- The exporter or importer must update its IEC detail on the DGFT portal around April-June every year. Even if the IEC remained unchanged, every exporter or importer must fulfill this requirement.
- The lack of timely updation can lead to the deactivation of the IEC registration. However, the IEC holders can activate the same by updating the detail on the portal provided that no FTP norms are breached in any way.
- Any error flagged by the DGFT in the IEC certificate must fix by the IEC holder in the stipulated timeline. Failing to do so can lead to the deactivation of the IEC registration.
What If An Exporter Or Importer Fails To Renew The IEC On Time?
Directorate General of Foriegn Trade has inculcated some stringent norms for non-renewal of the IEC. As per the prevailing norms cited under the Foreign Trade Policy, those who fail to renew the IEC on time may confront the penalty that involves the suspension of the code. And it is needless to mention that lack of IEC registration will prevent exporters or importers from conducting EXIM activities or clearing customs formalities.
Documents Mandatory for IEC Renewal
Listed below are the documents that one must arrange for the IEC renewal:
- PAN detail of the business owners
- The Import Export Code assigned by the DGFT to the business
- Residential details concerning the business owner
- Entity PAN, if available.
Note: Make sure the details concerning the IEC renewal remain the same for the IEC registration.
What Are the Steps Concerning IEC Renewal Online?
Following is the step-by-step processing concerning the IEC renewal online.
- Step 1: Head to the DGFT portal and log in.
- Step 2: on the home page or dashboard, choose the option called Apply for IEC.
- Step 3: Choose the line of business – whether you are an importer or exporter or both
- Step 4: After login on to the portal, link your IEC certificate via Digital Signature certificate or Aadhaar.
- Step 5: Next, Click Modify IEC to make the required changes in your IEC certificate, if any.
- Step 6: Review the changes you have made for any errors. Use the DSC or Adhaar to sign in again.
- Step 7: Hit the Print IEC option to take the hard copy print of the altered IEC registration.
The IEC renewal is important as well as mandatory for every exporter and importer.The deferred or non-renewal of IEC can incur legal trouble for the exporter or importer. Thus, it is advisable to stay in line with the authority norms so that you can operate your business hassle-free.
Read Our Article: How To Obtain IEC Code In India