India has an Importer-Exporter Code (IEC) through which importers and exporters conduct trade across borders. It is necessary to have a current and precise IEC, whether a business decides to ship items abroad, process international payments, or collaborate with global suppliers. Over time, changes can take place in a company- this can be a new address, a new contact, a new director or a new business structure. Under all these circumstances, IEC modification will be compulsory.
The blog provides a detailed step-by-step discussion of the IEC modification procedure in India, including its conditions, time frame, and key compliance requirements.
What is IEC Modification?
IEC modification refers to a revision or modification of the information contained in a given IEC certificate. Any alteration of business identity, functioning, or documents is to be registered in the Directorate General of Foreign Trade (DGFT).
The DGFT obliges all holders of IEC to maintain their records to prevent suspension, deactivation or rejection of import/export benefits.
When is Modification of the IEC Necessary?
IEC change is required in the following cases:
- Change in business address
- Alteration of the name of the business or trade name.
- Amendment to the business constitution, i.e. proprietorship to partnership or company.
- Change in bank details
- Introduction or personnel addition of directors/partners.
- Alternation of mobile number or email address.
- PAN change (only in case of a new IEC being needed)
- Changing the details of branch offices.
- Fixing any mistakes in prior IEC use.
Such changes have to be revised instantly because wrong IEC information can lead to delays in hiring customs, bank remittances or DGFT credits.
Law and Regulation of Updation
According to the recent directives of DGFT, IEC has to be revised after each year (between April and June), though there may be no change to be made. The failure may lead to the automatic deactivation of IEC.
In case of inactivity of your IEC, you will need to update the information in order to reactivate it. Annual updation has no government fee, but is obligatory.
Documents Required for IEC Modification
Depending on the changes you would wish to undertake, the exact documents would be determined; however, common documents are:
- PAN business/proprietor.
- Recent proofs of address, like an electricity bill, a rent agreement, or a sale deed.
- Cancelled bank cheque or bank certificate with new bank details.
- Aadhar/PAN of new partner/ director (where applicable)
- Partnership or board resolution of amendments to the constitution.
- Digital signature certificate of firms, LLPs and partnership firms.
- OTP verification, Mail address, and mobile number.
Ensure that all the documents are clear and properly aligned with the business details; otherwise, they will be rejected.
IEC Modification: Step-by-Step Procedure
To change IEC using the DGFT portal, follow the following few steps:
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Visit the DGFT Website
Visit the official portal of DGFT and enter your IEC-based username and password. If you don’t have login credentials, you can create them using your IEC and your registered email/mobile number.
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Choose IEC Profile Management
After being logged in, visit the services section and select IEC Profile Management.
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Select the Relevant Modification Section
You can update company information such as address, directors, branch offices, bank information, or communication information. Choose the areas to be edited.
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Upload Supporting Documentation
Depending on the nature of change, the system will require you to upload documents. Make sure the files are in the correct PDF format and are clear.
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Authentication by DSC/Aadhaar e-Sign
The end submission by companies, LLPs, and partnerships is required to be done through DSC.
Aadhaar-based e-Sign can be used by the proprietors
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Submit and Track the Application
Upon submission, you will be provided with an ARN to track them.
Normally, the change in IEC approval is processed within 1-2 working days, without any queries from the DGFT officer.
Government Fee to IEC Modification
DGFT also does not impose any fee for changing the IEC.
The modification of the IEC and its annual updating is absolutely free.
Yet, companies can incur expenses by seeking the help of professionals to write documents or do the application.
Common Reasons for IEC Modification Rejection
- Incorrect address proof
- Inequalities in PAN and business information.
- Old or invalid DSC
- The missing supporting documents.
- No checked email address or cell phone number.
- Bank information is inconsistent with the cancelled cheque.
To prevent wasted time, ensure all documents are verified before uploading.
Advantages of IEC Periodical Revision
- Smooth customs clearance
- Export incentives eligibility.
- Proper bank records with regard to foreign remittances.
- Less chance of DGFT fines or suspension.
- Export regulations have been observed.
The updated information is considered credible when it comes to overseas buyers and suppliers.
Annual IEC Updation
DGFT requires all IEC holders to verify their information annually, even though they have no changes in their contents.
This is just a confirmation /update that should be done in April and June.
Failure to comply will cause the automatic deactivation until the necessary update is made.
Conclusion
The compliance procedure is an easy yet important undertaking for all exporters or importers in India regarding IEC modifications. Be it a change of office, banking details, or structure, changing your IEC will make international trade transactions easier to carry out and ensure complete adherence to DGFT regulations.
Under the new DGFT online portal, the modification process is quick, paper-free, and free. Ensure your IEC is correct and up to date to avoid inconveniences during your export-import activities.
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