The Import Export Code (IEC) is a compulsory permit for importers and exporters to conduct import and export activities within India. It constitutes a 10-digit code allotted by the DGFT (Director General of Foreign Trade) to ensure smooth import-export activities. The IEC Code carries lifelong validity following issuance and needs to be renewed annually by importers and exporters. The 10-digit code stays the same during the business cycle.
Importers and exporters must renew the IEC Code or permit in a timely manner, as an expired one is regarded as not possessing one. If you continue operating an import-export company without prompt renewal, the DGFT will deactivate your IEC code. The IEC code is needed during shipping, customs, and global trade. It is prudent to update and renew the IEC code in a timely manner to prevent it from being deactivated or cancelled.
The IEC needs to be renewed between April and June each year to remain active; failure to do so will result in its deactivation.
Updating or Annual Renewal of IEC
You may know that the Import Export Code or IEC comprises a PAN-related exclusive ID kept by the DGFT as a prerequisite for performing any transaction concerning import or export. Notwithstanding the permanency of the IEC code, the Indian government, with operation from 2021, has implemented an annual updation need binding on all persons with an IEC. The IEC update, an online procedure, can be achieved by utilizing DSC or Aadhar-related OTP for verification. The objective of IEC’s annual renewal is to have accurate and updated details of the business and the consumers of the DGFT portal. It is necessary to get the IEC updated on a yearly basis with the precise OTP-confirmed email and business mobile numbers so that the DGFT database is reliable and accurate.
Process of IEC
An IEC is needed when importing to or exporting from India. Unless exclusively exempted, export or import may not be done by any person without acquiring an IEC. Nonetheless, it is only needed for service exports if the service provider gets inducements under the Foreign Trade Policy.
As a result of GST implementation, the IEC assigned resembles the firm’s PAN. On the contrary, DGFT will offer the IEC independently on the basis of an application. The kind of company that requests an IEC can be a partnership, a trust, a sole proprietorship, a Pvt limited company, a society, an LLP, or a HUF. The IEC must be renewed between April and June each year, and non-compliance will lead to the deactivation of the IEC license.
Documents Needed for IEC Renewal
A few documents needed for renewal of the IEC code are:
- Importer Exporter Code (IEC) permit number
- All trustees, directors, Aadhar card copies, partners Pan cards and mobile numbers
- A scanned copy of the registered address proof
- Scanned copy of the company Pan Card
- Proof of ownership of property
- Cancelled cheque
- Digital signature
- GST certificate copy
Stepwise Procedure for IEC Annual Renewal
The following steps are involved in the annual renewal of the IEC:
- The IEC user must register on the DGFT website by providing the firm’s email, address, mobile number, and certified person name.
- You must pick your category as CA, Technical Authority, Importer, CS, or foreign Exporter/Importer. Next, you must enter your Email ID, Name, address, and Mobile Number and click on send OTP. You will receive an OTP with your email ID and mobile number.
- Following OTP verification, you will get a User ID and Password of DGFT on your email ID, then sign in to the DGFT portal with the User ID and Password sent by mail.
- Following successful login, you need to select the Link IEC button shown on the homepage.
- Input your Old IEC Number and verification through Digital Signature or Aadhar related OTP.
- You can print the IEC after it is renewed and updated by choosing Print IEC.
The renewal of IEC does not incur a government charge to DGFT and is entirely online.
Details that can be changed in IEC
Apart from being a regulatory need, the IEC annual renewal also presents a chance to update all earlier submitted information on the DGFT portal. While renewing IEC, you can change significant aspects of your certificate, like:
- Registered Address: Alterations to the official business address.
- Contact Detail: Updates to email IDs and mobile numbers.
- Directors/Partners: Inclusion or removal of partners or directors in the business.
- Branch Address: Inclusion or removal of branch addresses
- Details of Bank Account: Modifications in bank account numbers and associated financial information.
- Type of Business: Alterations in the nature or kind of the business activities performed.
These updates are necessary so that the IEC Code is complete and accurate for import and export activities of the business, which is also necessary for compliance.
Significance of the IEC Renewal
Renewal of the IEC code is very necessary for the companies that are involved in International Trade. It is specifically referred to as the Importer Exporter Code. The code comprises a 10-digit alphanumeric ID number and is immensely significant to the business.
The IEC code renewal is mandatory to enhance product management – failure to renew the license results in penalties and fines.
The renewal of the permit is compulsory to display that the code is current and does not impact the trading activities.
A workable ID of IEC is essential for the smooth passage of goods through customs.
An invalid Importer-Exporter Certificate may disturb the activities and lead to the stoppage of shipment and financial loss.
The code will boost the trust and credibility of the business with international clients and partners.
- Enhanced protection for your business: Renewal of your IEC ensures that your goods are accessed securely into and out of the country.
- Increased Efficiency: Renewal of your IEC assures that all the essential paperwork is completed promptly, which will enhance your business.
- Less paperwork: By renewing your IEC, you can avoid the submission of many paperwork forms every time you wish to import or export products. This will save you money and time.
Optional Ways to Renew IEC Code in India
Renewing your IEC in India can be achieved in multiple ways, based on your business type. You may apply for a new code over the Internet, at your regional trade office, or in person through the application process. Some of the options to turn in your code are:
Renewing online: The most common method of renewal of your IEC is through the internet. Either go to the relevant government site or use one of many websites specializing on IEC renewals. You simply require your IEC code and your business permit number.
Via your regional trade office: If you cannot access the internet, or if you wish to renew your code in your presence, you can visit your local trade office. There, you will be required to furnish your IEC code, business permit number, and other essential details. You will also be required to reimburse the applicable charges.
Through mailing an application: If you opt not to go to a regional trade office or you are unable to access the internet, you can send an application by mail for a fresh IEC number. A new code will need nearly 2 to 3 weeks to get. This alternative is unavailable for businesses with a provincial commercial permit.
Bottom Line
Any business venture that wants to spread its wings beyond its home frontiers, a know-how of the IEC becomes imperative. This specific code ordered by the Director General of Foreign Trade goes a long way in enabling foreign trade activities by removing barriers to import and export transactions.
It promotes trade, ensures timely customs clearance, helps comply with global business practices, and utilizes the DGFT’s incentives. The World Organization has also emphasized the fact that it has no daily submissions’ requirement and is valid for lifetime; thus it’s a stress-free asset for international business expansion.
If you have any queries about how to renew your IEC code in India, reach out to our crew at kanakkupillai – we are always overjoyed to help.
