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Renewal Requirement of IEC Certificate in India

Renewal Requirement of IEC Certificate in India

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Renewal Requirement of IEC Certificate

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 is requiring and increasing the importance of the IEC Certification which is the Import Export Code enabling all the international commercial exchange of the 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 on12th of February 2021, it is stated that a renewal or update of the IEC certificate every year. And this shall be done from April to June, the failure of which lead to de-activation of 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 choose if the user is an importer or exporter from the drop-down menu that is appearing.
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, canceled bank cheques, Aadhar card details of the partners or owner 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 namely, ‘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 appliable. Again, the registered mobile number should be entered for generation of OTP and verification using the same.
Step 5: Then on the page which the user is re-directed 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 also be printed and here selects 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 authorized signatory for anticipating the same. Then make the necessary changes by choosing Modify IEC tab.
So, we can conclude that the renewal of the IEC certificate has been made mandatory every year and the same should also be updated in case the entrepreneur is making any particular changes to the existing information pertaining to the business. And if the same is not done there will be problems arising from the mismatch in the information’s which are displayed on various certificates and documents that are used by the entity for complying with the export and import activity. Hence, it is always recommended that the entity and its management take additional care to update and also renew the IEC Certificate for a seamless conducting of the activity.
 

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