IEC Code Renewal: Process to Update IEC
In February 2021, the DGFT amended the importer exporter regulations by making iec code renewal mandatory for all IEC Number holders. IEC Number is a business identification number allotted to all importers and exporters in India. If you do not have an IEC number, you cannot trade outside of India. Before 2021, an iec code issued once remained valid for the entire lifetime, so it was easier to manage import export business in India. This Article focuses on the reasons why iec code renewal was introduced and how one can get an iec update. Lastly, the consequences of non – renewal of iec code are also discussed.
Why is IEC update important?
Before 2021, your iec was valid for the entire span of your business once you completed the iec application process. Hence, it was not mandatory to get iec updated each year. However, this led to a lot of issues because the details of iec certificate remained old, when any changes to the firm were made. IEC code renewal is therefore important for the following reasons:
- When you get an iec update, you also update all the information, such as addresses, phone numbers etc. of the firm as well as all owners/shareholders. This helps the DGFT (Director General of Foreign Trade) in maintaining their database;
- Failure to update iec leads to deactivation of the IEC certificate. All individuals wanting to start an import export business in India are aware that no trade of goods outside Indian territory is allowed without a valid iec.
How to renew IEC code?
IEC update is a very easy process. All you need to do is follow the steps mentioned below:
Step 1: Visit the portal
Go to the DGFT portal by clicking here.
Step 2: Login to your account
This is a mandatory step, if you do not have an account, you need to register as a new user before you get access to iec renewal.
Step 3: IEC update page
Go to the “IEC Portfolio Management” from drop-down in “registrations” and select “update iec” option from the new page.
Step 4: Link IEC
Since the entire IEC application online process is made accessible by the DGFT, all people who acquired their IEC certificate offline, need to link existing iec to the new portal. To update iec, first you have to link iec, if not done yet. You can link your iec by entering the iec number in the dialog box and by verifying it with ‘link iec OTP’.
Step 5: Update/Modify IEC
Once you successfully link your iec to the DGFT portal, you can update/modify your iec from choosing the form. Once you click on ‘update iec’, a form with all existing details of the IEC certificate will appear. You can choose the details in IEC that need modification and then get iec update accordingly.
Step 6: Verification for IEC renewal
Once you update iec details for iec renewal, you need to complete the process by verifying iec certificate through Digital signature certificate or Aadhar. Once you submit the iec update form, your iec renewal will be complete.
Modification in IEC details
While IEC renewal yearly is mandatory, you get the chance to update all the information that you have submitted to the DGFT portal. You can modify the following information while updating iec certificate:
- Change in the registered office address of firm (principal place of business);
- Modification/addition/deletion of branch office address;
- Change in mobile number or email ID;
- Modifications in the Partners/Directors details;
- Changes to the Nature of the Business; and
- Any other modification to the bank details as submitted.
Also Read: Documents required for IEC Code Application
Consequences of non-renewal of IEC number?
As we know, it is mandatory to update iec code between April to June each year for the financial year. The last day to apply for iec update is 30th June. Hence, if you want to carry on your import export business without any hassles the best solution is to get iec update in a timely manner. The consequence of non-renewal of IEC code is deactivation of the iec certificate. Once your iec deactivates, you will need to get iec update to reactivate your iec number again.
However, when your iec deactivates, you cannot conduct any import or export trade of any goods, unless your business falls under exemptions of IEC requirements. Hence, it is very important for traders to get timely iec update!
International trade involves a lot of aspects that need constant attention from the business owner. In such cases, it can become quite difficult to keep a track of business and governmental registrations and their deadlines. LegalWiz.in is your one stop solution for handling all such matters! You can apply iec code online, link iec to DGFT Portal and get iec update in just a few clicks!
As a writer, Diksha aims to make complex legal subjects easier to comprehend for all. As a Lawyer, she assists startups with their legal and IPR drafting requirements. To understand and further spread awareness about the startup ecosystem is her motto.
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