Annual Up gradation/Modification of IEC is now mandatory

If you are running your own import-export business then you will have an IEC number. Every person dealing with imports and export has to have an IEC to conduct their business. The IEC (Import Export Code) is a required identifying document for every import/export business in the country. Except under specifically granted exclusions, a company can make any import/export supply until IEC has been obtained.  In this article, we will discuss, “Annual Up gradation/modification of IEC is now mandatory”.

Meaning of Import Export Code (IEC)

IEC stands for Import-Export Code. It is a 10 digit business identification number. Further, it is issued by the Director-General of Foreign Trade (DGFT). You cannot import or export goods without the IEC. In India, importers and exporters must have an IE Code.

Individuals or businesses active with importing or exporting goods and services from India require IEC. Further, individuals who own a business can get an IE Code in their name.

Requirement of Import-Export Code

IEC is essential for importer and exporter in India. You need IEC to engage in import or export of goods and services from India. Further, you can obtain IEC in your name.

All the exporters who are engaged in the export of goods or services from India need an IEC to quote during the shipments of goods or services.

The IEC can be used by that entity for all its import or export transactions without any further hassles. Without the IEC, you cannot participate in the international markets.
The banks also need the IEC of the exporters for receiving payments from International sources.

Applying for Import Export Code (IEC)

Application for IEC is an application that is submitted by the respective Importer/Exporter to the DGFT along with the relevant supporting documents, to obtain the 10-digit identification code.

Upon the application submission, DGFT issues an IEC to the entity within the period of 1-2 working days.

Registration Fee for Import Export Code (IEC)

The government charges an Import Export Code registration fee of Rs. 500.00. Further, you can pay it via EFT if you are submitting the IEC Application online.Upon the successful submission, the IEC allotment letter with a 10-digit code is dispatched to the address of the applicant via self-address envelope.

Mandatory Up gradation/Modification of Import Export Code (IEC)

The DGFT issued a notification (number- 58/2015-2020) which amended the ICE related provisions in the Foreign Trade Policy. The following are a few pointers from the said amendment,

• An IEC holder has to ensure that details in its IEC are updated electronically every year during the April-June period.
• In cases where there are no changes in IEC details, the same also needs to be confirmed online.
• An IEC Shall be de-activated if it is not updated within the prescribed time.
• An IEC so de-activated may be activated, on its successful up gradation. This would however be without prejudice to any other action taken for violation of any other provisions of the FTP.
• An IEC may also be flagged for scrutiny. IEC holders are required to ensure that any risks flagged by the system are timely addressed, failing which the IEC shall be deactivated.

Document Requirement for modifications of Import Export Code (IEC)

The following are the documents that you will need to update/modify your details,

• Copy of Company Pan Card
• Copy of Cancelled Cheque
• A copy of Registered Address Proof
• PAN Card, Aadhaar Card and Mobile number of all directors/partners
• Digital Key
• Copy of GST Certificate
• Import-Export Product Group
• Details of Amendments (If any)

Procedure for modifications of Import Export Code (IEC)

To update and/or modify ICE details on the DGFT portal there are mainly three functions. They are,

• Registration
  To do any activity on the DGFT Portal regarding the import-export first we should have a profile on the portal. Further, details such as a Mobile number, Email Id, and applicant’s name are necessary to be filled on the portal to create a “New Profile”
• Linking
  Profile created has to be linked with the existing IEC (Import-Export Code) with the help of a digital signature certificate and updated Adhar card of the applicant. Moreover, this is a necessary step before IEC Up gradation/modification or claiming your pending benefits under certain government incentive schemes.
• Up gradation/Modification
  As per the notification you have to update the IEC every year between April to June even if there is no amendment on the portal. Further, if you do not update the details of IEC every year in the stipulated time, IEC will be de-activated.

Things we can Update/Modify on the Portal

The following are the things that we can update or modify in the DGFT portal,

• Registered Address
• Branch Address
• Mobile Number & Email ID
• Bank Details
• Director/Partner details
• Nature of Business

Conclusion

If you are running an Import-Export business then you need to update your IEC details annually in the DGFT portal. Moreover, it is mandatory to do so even if you have nothing to update you need to notify that. However, if you fail to do so then your IEC may be suspended. Therefore, you have to regularly update your IEC details on the DGFT portal without fail.