{"id":43813,"date":"2022-05-28T11:23:19","date_gmt":"2022-05-28T05:53:19","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=43813"},"modified":"2022-05-28T11:28:02","modified_gmt":"2022-05-28T05:58:02","slug":"iec-deactivation-by-dgft-and-how-to-avoid-it","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/iec-deactivation-by-dgft-and-how-to-avoid-it\/","title":{"rendered":"IEC Deactivation by DGFT and how to avoid it?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">For each business to successfully\ntransact import or export transactions, you need to comply with specific rules\nand laws. An Import Export Code (IEC Number) license is a requirement that a\nbusiness must fulfil for importing or exporting business in India. It is also\ncalled the Importer-Exporter Code. In this article, we will discuss IEC\nDeactivation by DGFT and how to avoid it?<\/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\/iec-deactivation-by-dgft-and-how-to-avoid-it\/#What_is_the_IEC_Code\" >What is the IEC Code?<\/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\/iec-deactivation-by-dgft-and-how-to-avoid-it\/#How_do_I_register_Import_Export_Codes_IEC\" >How do I register Import Export Codes (IEC)?<\/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\/iec-deactivation-by-dgft-and-how-to-avoid-it\/#IEC_Deactivation_by_DGFT\" >IEC Deactivation by DGFT<\/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\/iec-deactivation-by-dgft-and-how-to-avoid-it\/#How_to_avoid_IEC_Deactivation_by_DGFT\" >How to avoid IEC Deactivation 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\/iec-deactivation-by-dgft-and-how-to-avoid-it\/#How_to_Update_or_Modify_Importer_Exporter_Code\" >How to Update or Modify Importer Exporter Code<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/iec-deactivation-by-dgft-and-how-to-avoid-it\/#Recent_Amendments_in_New_Import_Export_Code\" >Recent Amendments in New Import Export Code<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/iec-deactivation-by-dgft-and-how-to-avoid-it\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_IEC_Code\"><\/span>What is the IEC Code?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>IEC stands for Import-Export Code, a\n10-digit code that an individual or a business needs to import or export goods\nor services. The IEC code is allotted by the DGFT (Director General of Foreign\nTrade), Ministry of Commerce and Industries, and the Government of India.<\/p>\n\n\n\n<p>After submitting all the requisite\ndocuments, generating the IEC code takes 12-15 working days. In India, an IEC\nis mandatory for every commercial importer or exporter. Hence, the business not\nhaving Import Export Code is not qualified to undertake the category of import\nand export.<\/p>\n\n\n\n<p><strong><em>Note: The validity period of this Import\nExport code is for a lifetime, which means that the IEC holder need not apply\nfor IEC Renewal. A company having IEC can perform all requirements concerning\nimport-export and related issues.<\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_do_I_register_Import_Export_Codes_IEC\"><\/span>How do I register Import Export Codes (IEC)? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>All Indian exporters and importers must\ncomply with the Foreign Trade Policy&#8217;s Import Export Code (IEC). Therefore, the\nbelow-mentioned steps have been used to categorize all registration steps.<\/p>\n\n\n\n<ol><li>Apply for DSC: <a href=\"https:\/\/corpbiz.io\/iec-registration\"><strong>IEC registration<\/strong><\/a> is entirely online. Therefore, a DSC must be used to sign the application. <\/li><li>Fill Online Application and Upload Document<strong>&#8211;<\/strong>To avoid any mistakes, applicants must complete the application online. An application rejected for any reason will be made if there is a slight error.<\/li><li>Upload and follow up- After your application has been filed correctly and submitted, you will need to follow up if IEC is delayed.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"IEC_Deactivation_by_DGFT\"><\/span>IEC Deactivation by DGFT<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>With reference to <strong>Notification No.\n58\/2015-2021<\/strong> <strong>dated 12.02.2021<\/strong>, <strong>11\/2015-2021 dated 01.07.2021,\n16\/2015-2021,<\/strong> a notification was issued by DGFT to all IEC holders,\nrequiring them to ensure that their Import and Export Code details are updated\neach year electronically during the period of April-June (and for which they\nwere not required to pay any user fees). Based on the representations of IEC\nholders who hadn&#8217;t updated their IECs, it was extended to 31.07.2021. After\nthat, it extended to 31.08.2021. <\/p>\n\n\n\n<p>Before the phase-wise deactivation, due\nintimations were also <strong>given via Trade Notice 18\/2021-2022 dated 20,09.2021\nand Trade Notice 26\/2021-22 dated 19.11.2021.<\/strong><\/p>\n\n\n\n<p>The third phase of deactivation for IEC that have not been updated and the Trade Notices and the notification mentioned above is initiated where All Import and Export Codes have not been updated 01.07.2020 will be deactivated starting 01.02.2022. <\/p>\n\n\n\n<p>Respective IEC holders whose IEC got deactivated are allowed to update their IEC during this interim period until 31.01.2022; failing that, the IECs will be removed from 01.02.2022. In addition, any IEC that has received an online update application but is still awaiting approval by the <strong>DGFT RA<\/strong><sup><a href=\"https:\/\/www.dgft.gov.in\/CP\/?opt=dgft-ra-details\"><strong>[1]<\/strong><\/a><\/sup> shall be removed from the deactivation list.<\/p>\n\n\n\n<p><strong>Note-The list of IECs may be seen at the\ngiven link (https:\/\/www.dgft.gov.in\/CP\/?opt=IECDL).<\/strong><\/p>\n\n\n\n<p>IECs so deactivated will have an\nautomatic reactivation option without the need for manual intervention from the\nDGFT RA. In addition, the DGFT website can be used to update IECs online. After\nsuccessful activation, the IEC will be activated once again and sent to Customs\nwith the updated status.<\/p>\n\n\n\n<p><strong>Note- This is subject to the approval of\nthe competent authorities.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_avoid_IEC_Deactivation_by_DGFT\"><\/span>How to avoid IEC Deactivation by DGFT?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>All existing Importer Exporter Code\nholders should satisfy the below mentioned mandatory compliances- <\/p>\n\n\n\n<ul><li>Promptly,\nan electronically generated update of changes in the information provided for\nobtaining an IEC Code is performed between April and June of each year.<\/li><li>Even\nthough the information provided has not changed, the IEC holder must verify\nelectronically between April and June of each year to prevent it from being\ndeactivated.<\/li><li>To\nsteer clear of the deactivation of an IEC, the reaction to hazards listed in\nthe DGFT portal against it must be controlled by the IEC holders within a\nspecified period.<\/li><li>After\nrevising or updating the information or getting a response to a query through\nthe DGFT Portal, the deactivated IEC can be revived.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Update_or_Modify_Importer_Exporter_Code\"><\/span>How to Update or Modify Importer Exporter Code<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following the notification, an IEC Holder\nmust update the IEC each year from April to June, even if there&#8217;s no updation\non the portal of the DGFT.<\/p>\n\n\n\n<p>In case of non-failure of updation of\ndetails of IEC every year within the prescribed timeframe, IEC will be\nDeactivated.<\/p>\n\n\n\n<p>Here is the list of types of\nupdation\/changes that an IEC holder can do on the DGFT portal-<\/p>\n\n\n\n<ul><li><strong>In registered address. IN Branch address.<\/strong><\/li><li><strong>Mobile Number and Email ID.<\/strong><\/li><li><strong>Bank Details.<\/strong><\/li><li><strong>Directors\/Partners.<\/strong><\/li><li><strong>Change in business nature.<\/strong><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Recent_Amendments_in_New_Import_Export_Code\"><\/span>Recent Amendments in New Import Export Code<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As mentioned in the Policy, the Importer\nExporter Code is required for export\/import from\/to India.<\/p>\n\n\n\n<p>The DGFT issues IEC, and an application\nfor issuance of an electronic IEC can be made promptly on the DGFT official\nNotification.<\/p>\n\n\n\n<p>Additionally, IEC&#8217;s application process\nand upgrades are online, and the applicant can generate IEC following the IEC\nup-gradation process through the E-IEC portal.<\/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>Conclusively we can say that Import Export Code is required to start Import and Export from India. Without obtaining an Import and Export code, no importer and exporter are authorized to carry out the Import Export Business.<\/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-renewal-and-surrender-underlying-norms\/\">IEC Registration Renewal and Surrender: Underlying Norms\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>For each business to successfully transact import or export transactions, you need to comply with specific rules and laws. An Import Export Code (IEC Number) license is a requirement that a business must fulfil for importing or exporting business in India. It is also called the Importer-Exporter Code. In this article, we will discuss IEC [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":43817,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[165],"tags":[2381],"acf":{"service_id":"16"},"authorName":"Priyanka Bajpayee","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/03\/IMG-20220303-WA0005.jpg","authorDescription":"A Company Secretary together with PG in international Business, she has gained significant experience as legal content writer. She has keen interest in doing research and writing on legal and financial subject matters. She also holds work experience in legal compliances.","postViews":7283,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/43813"}],"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\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=43813"}],"version-history":[{"count":8,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/43813\/revisions"}],"predecessor-version":[{"id":43822,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/43813\/revisions\/43822"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/43817"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=43813"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=43813"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=43813"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}