{"id":31771,"date":"2021-06-12T12:41:41","date_gmt":"2021-06-12T07:11:41","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=31771"},"modified":"2024-05-24T14:37:35","modified_gmt":"2024-05-24T09:07:35","slug":"amendments-made-by-dgft-in-iec-provisions","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/amendments-made-by-dgft-in-iec-provisions\/","title":{"rendered":"Know the Amendments Made by DGFT in IEC Provisions"},"content":{"rendered":"\n<p class=\"has-drop-cap\">DGFT of ten brings some amendments to FTP\u2019s 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.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/amendments-made-by-dgft-in-iec-provisions\/#What_are_the_Changes_Introduced_by_DGFT_in_IEC_Provisions\" >What are the Changes Introduced by DGFT in IEC Provisions?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/amendments-made-by-dgft-in-iec-provisions\/#Depiction_of_the_notification_issued_by_DGFT_regarding_amendment_of_IEC_provisions\" >Depiction of the notification issued by DGFT regarding amendment of IEC provisions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/amendments-made-by-dgft-in-iec-provisions\/#Effect_of_this_notification\" >Effect of\nthis notification<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/amendments-made-by-dgft-in-iec-provisions\/#Some_light_on_the_latest_announcementsbeing_made_by_DGFT\" >Some light on\nthe latest announcementsbeing made by DGFT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/amendments-made-by-dgft-in-iec-provisions\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Changes_Introduced_by_DGFT_in_IEC_Provisions\"><\/span>What are the Changes Introduced by DGFT in IEC Provisions? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>All importers and exporter under <a href=\"https:\/\/corpbiz.io\/iec-registration\"><strong>IEC registration<\/strong><\/a> 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. <\/p>\n\n\n\n<p>Directorate General of Foreign Trade in association with the <em><strong>Ministry of Commerce and industry<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Ministry_of_Commerce_and_Industry_(India)\"><em><strong>[1]<\/strong><\/em><\/a><\/sup> 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. <\/p>\n\n\n\n<p>As we\nmentioned, the IEC would be activated in a state of non-conformity with the above\nrequirements. However, post-deactivation, the IEC can be re-activated through the\nstandard procedure if it isn\u2019t breaching the rest of the FTP\u2019s guidelines. The\napplication process regarding IEC\u2019s issuance and updation is completely online,\nand the same can be availed in light of the procedure cited in the Handbook of\nProcedure. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Depiction_of_the_notification_issued_by_DGFT_regarding_amendment_of_IEC_provisions\"><\/span>Depiction of the notification issued by DGFT regarding amendment of IEC provisions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here\u2019s whatthe\noriginal notification says about the changes made by DGFT in IEC provisions. <\/p>\n\n\n\n<p>In view of rights bestowed by Section 3 of FT (D&amp;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.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/procedure-to-check-the-iec-application-status\/\">What is the Complete Procedure to Check the IEC Application Status? <\/a><\/mark><\/p>\n\n\n\n<p><strong><em>Following paragraphs of FTP, 2015-20 are amended as below:<\/em><\/strong><\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>Existing\n  Provision<\/strong>\n  <\/td><td>\n  <strong>Amended\n  Provision <\/strong>\n  <\/td><\/tr><tr><td>   1.11   Issue of Electronic- Importer Exporter Code   <\/td><td>\n  1.11\n  e-IEC (Electronic-Importer Exporter Code)\n  <\/td><\/tr><tr><td>   (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\/\/:dgft.gov.in).   Applicant can furnish the documents &amp; pay the standard fee via Net   banking. The applicant shall, however, furnish the application enclosing   his\/her digital signature.   <\/td><td>\n  Importer\n  Exporter Code is compulsory for export\/import from\/to India as cited in\n  paragraph 2.05 of this FTP Policy.&nbsp;\n  DGFT issues IEC in electronic form (e-IEC). To obtain e-IEC an\n  application can be made on the DGFT portal i.e. (http\/\/:dgft.gov.in).\n  <\/td><\/tr><tr><td>   2.05   Importer-Exporter Code (IEC)   <\/td><td>\n  2.05\n  Importer-Exporter Code (IEC)\/(e-IEC)\n  <\/td><\/tr><tr><td>(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   <\/td><td>\n  (c)\n  Application process for IEC and updation in IEC is completely online and IEC\n  can be generated by applicant as per the&nbsp;\n  procedure detailed in the Handbook of Procedure\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p>The given sub-paragraphs are introduced under para 2.05 of Chapter-2 of FTP, 2015-2020 as under::<\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <em>FTP<\/em>\n  <em>Paragraph&nbsp;no.<\/em>\n  <\/td><td>\n  <em>Text\n  added (New)<\/em>\n  <\/td><\/tr><tr><td>\n  <em>2.05(d)<\/em>\n  <\/td><td>\n  An\n  IEC holder must ensure that information in its Import Export Code is updated\n  electronically per year, fromApril to June. Even the nil changes are supposed\n  to be confirmed online without any delay. \n  <\/td><\/tr><tr><td>\n  <em>2.05(e)<\/em>\n  <\/td><td>\n  An\n  IEC shall confront de-activation if it is found outdated after the prescribed\n  time limit. The deactivated Import Export Code may be re-activated after successful\n  updation. However, this has nothing to take with the action taken for\n  contravention of any other FTP\u2019s norm.\n  <\/td><\/tr><tr><td>\n  <em>2.05(f)<\/em>\n  <em>&nbsp;<\/em>\n  <\/td><td>\n  An\n  IEC may undergo scrutiny as per the authority\u2019s direction. Thus, IEC holders\n  are supposed to address loopholes promptly; failing to which could cease the\n  IEC validity. \n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p>4. The sub\nparas 1.11(b), 1.11(c) &amp; 1.11(d) of FTP, 2015-2020 has been deleted.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Effect_of_this_notification\"><\/span><strong>Effect of\nthis notification<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>IEC related\nnorms present in Chapter-1 and Chapter-2 of FTP, 2015-2020 are amended to serve\nthe following purposes<\/p>\n\n\n\n<ul>\n<li>Strengthen compliance\u2019sdegree for better control<\/li>\n\n\n\n<li>Consistent updation of IEC holders\u2019 data, thereby ensuring\nimproved transparency. <\/li>\n\n\n\n<li>Compel exporters and importers to ensure adherence tonew FTP\nnorms.<\/li>\n\n\n\n<li>Better due diligence of business activities. <\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Some_light_on_the_latest_announcementsbeing_made_by_DGFT\"><\/span><strong>Some light on\nthe latest announcementsbeing made by DGFT<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>1:\nRestriction on the exportation of Amphotericin-B injections (Dated- 1<sup>st<\/sup>\nJune 2021)<\/em><\/strong><\/p>\n\n\n\n<p>The Director-General\nof Foreign Trade i.e. DGFT has imposed restrictions on the export of\nAmphotericin-B injections which is being tagged with Ex 30049029, Ex 30049099\nunder the ITCHS Code. It is used for treating black fungus disease.The\ndecisions were announced owing to the escalating cases of Mucormycosis, mainly\naffecting Covid affected patients, and acute shortage of Amphotericin-B\ninjection.<\/p>\n\n\n\n<p><strong><em>2: Waiver of\nrestriction on the importation of oxygen concentrator&nbsp; for personal use (Dated- 30-April-2021)<\/em><\/strong><\/p>\n\n\n\n<p>DGDT amends\nthe Existing Para 2.25 of FTP, 2015-2020. As per the revised para, the\nimportation of goods, including those from e-commerce platforms, via post,\nwhere Custom clearance is mandated, is banned except for life-saving drugs and\noxygen concentrators. The exemption regarding the oxygen concentrator will\ncontinue to remain active till 31<sup>st<\/sup> July 2021.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>DGFT\u2019s 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.&nbsp; The changes introduced by the DGFT in IEC provisions suggest that information sharing has now become an absolute mandate for the IEC holders. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/iec-registration-for-small-business\/\">IEC Registration for Small Business: All you Need to Know <\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>DGFT of ten brings some amendments to FTP\u2019s 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. [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":31778,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[165],"tags":[1810],"acf":{"service_id":"16"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":5444,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/31771"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=31771"}],"version-history":[{"count":14,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/31771\/revisions"}],"predecessor-version":[{"id":64408,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/31771\/revisions\/64408"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/31778"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=31771"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=31771"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=31771"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}