What are the recent changes in Import Export Code (IEC) Registration Process made by Indian Government?

Introduction

The Indian Government, through the Directorate General of Foreign Trade (DGFT), has recently implemented several notable changes to the Import Export Code (IEC) registration process. These changes aim to streamline and simplify the procedures associated with obtaining and managing an IEC in India. This article explores the key recent changes made by the Indian Government to the IEC registration process

What is Import Export Code (IEC)?

In India, anyone doing business in the import and export of products and services must obtain an Import Export Code registration. The Directorate General of Foreign Trade (DGFT) issues a 10-digit unique code to the individual once the IEC registration procedure is completed. The registration of an Import Export Code aids in the growth of a company. The authority issues an IEC only once, and the business owner keeps it for the duration of the entity’s existence.

What are the recent changes in the IEC registration process made by the Indian Government?

1. Relaxation in documents required for IEC

One of the significant modifications made in the Import Export Code is the relaxation of documents required for obtaining an IEC in India. Earlier, the applicant had to submit a variety of documents, such as a PAN Card, Passport, Bank Account Details, etc. Now, the government has made the process easier by reducing the number of documents required. The applicant can now submit either an Aadhaar card or a PAN card to get an IEC.

2. Mandatory requirement for updating IEC

Another important IEC modification that is made by Indian Government is that the DGFT has made it mandatory for every IEC holder to update their information in the DGFT portal. This information includes the name and address of the company, the details of the proprietor or partners, and the details of the bank account. The updated information must be submitted within 180 days from the date of issue of the IEC. Failure to update the information within the given time frame may lead to the cancellation of the IEC in India.

3. Faster processing of IEC applications

The DGFT has introduced a new system for processing IEC applications called the ‘Aatmanirbhar Bharat Self-Reliant India’ platform. This platform has been designed to provide a hassle-free, quick, and transparent system for processing IEC applications. The platform will enable applicants to submit their applications online and track the status of their applications in real time.

4. Simplified process for amendment of IEC

The government has also simplified the process for amending the IEC in India. Previously, applicants had to submit a physical application to the DGFT office, which could take several days or even weeks to process. However, with the recent modifications, the process has been simplified, and applicants can now submit the amendment application online. The new process is not only faster but also more convenient for the applicant.

5. Introduction of digital signature for IEC

The DGFT has also introduced the use of digital signatures for Import Export Code applications. This is a significant step towards making the process paperless and more efficient. The use of digital signatures will eliminate the need for physical signatures and the submission of hard copies, thereby reducing the processing time significantly.

6. Validity of IEC in India

The validity of an IEC has also been modified. Previously, an IEC in India was valid for a lifetime. However, now, the IEC will be valid for five years from the date of issue. After the expiry of the Import Export Code, the applicant will have to apply for a renewal.

Conclusion

The relaxation of documents required, mandatory requirement for updating IEC, faster processing of IEC applications, and simplified process for amendment of IEC are some of the significant modifications that have been introduced. These recent modifications have made it easier and more convenient for individuals and companies to obtain and maintain their IEC. These changes will undoubtedly help in promoting cross-border trade activities in India.