The phenomenon globalization is enjoying its utmost height now, and the business houses are involving themselves in the import and export on a greater deal. At times the exporters engage in the exporting activity despite having a good market in the domestic locale, due to the higher profit margins or scope held by their products in the international markets also. And they also engage in the importing activity such that they are able to procure the raw materials required for their manufacturing or even the final products at a cheaper rate, which will again help them increase the profit margin earned.
So, the increased involvement in the import and export activity requires and increases the importance of the IEC Certification, which is the Import Export Code, enabling all the international commercial exchange of products or goods. The necessary requirement to get this certificate renewed for furthering or continuing the export and import activity is the basic point of discussion in this article.
Is there an Expiry for the IEC Certificate?
During the span of a business, there will arise multiple situations where the business owner will have to modify any existing information due to a change that was made by him to the original information pertaining to the business, due to various reasons. Some of this can be as below:
- Change in the name of the company or the entity
- Change in the email address of the entity from what is displayed on the IEC Certificate
- Change in the mobile or contact number from what is displayed on the Certificate
Along with this, referring to the Notification No. 58, which was issued on the 12th of February 2021, it is stated that a renewal or update of the IEC certificate is required every year. And this shall be done from April to June, the failure of which leads to deactivation of the IEC Certificate of the exporter or the importer.
Procedure for Registering and Updating the IEC Certificate
The following would be the procedure to be followed by the entrepreneur for registering and also updating or renewing the IEC Certificate:
Step 1: Access the online portal of the DGFT, which is the Directorate General of Foreign Trade by clicking on https://www.dgft.gov.in/CP/. Register as a new user here by entering the email ID, mobile number, district name, pin code, state, and also city name. The choice of whether the user is an importer or exporter from the drop-down menu that appears.
Then an OTP will be issued on the registered mobile number, which should be entered for completing the verification.
Step 2: The documents like the address proof of the entity, registration or the incorporation certificates or documents, cancelled bank cheques, Aadhar card details of the partners or owners of the entity, and also their digital signature certificate.
Step 3: Now, to apply for the IEC Certificate, the user has to click on the tab named Services, and choose the option named ‘IEC’ from the given menu, and choose the ‘Online IEC Application’ tab given.
Step 4: The PAN, name, date of birth, or the incorporation or registration date should be entered as applicable. Again, the registered mobile number should be entered for the generation of OTP and verification using the same.
Step 5: Then, on the page to which the user is redirected to enter the branch details (if any), the partner’s and directors’ details, along with the proof of residence and the email IDs.
Step 6: Now by entering the ‘Fee Payment’, pay the fees as prescribed by the website using the debit card, credit card, or net banking. On the payment of which a reference number will be issued by DGFT, which can be used for checking or tracking the status of the application placed with the DGFT.
Step 7: The application should also be printed, and here select the option, namely, ‘Submit and Generate IEC Certificate’.
Step 8: In case of any modification to be made to the IEC Certificate which is already generated, under Step 3, choose the tab named, ‘Services’ and then choose, ‘Modify IEC’ option from the menu which is dropped down.
Step 9: Now, enter the existing IEC Certificate Number and use the DSC of the authorised signatory to authenticate the same. Then make the necessary changes by choosing the Modify IEC tab.
Therefore, we can conclude that the renewal of the IEC certificate has been made mandatory annually, and the same should also be updated if the entrepreneur makes any changes to the existing business information. And if this is not done, problems will arise from the mismatch in information displayed on various certificates and documents used by the entity to comply with export and import activities. Hence, it is always recommended that the entity and its management take additional care to update and renew the IEC Certificate for a seamless conduct of the activity.
