Information on IEC Deactivation by DGFT, and IEC Deactivation Process by DGFT

In this article information on IEC Code, IEC Deactivation Process by DGFT, IEC Code Renewal, “How to update IEC Code?”, and other information on the Import-Export License will be mentioned. Before going through the IEC Deactivation by DGFT it is essential to learn about “What is IEC?”, and other basic knowledge about Importer Exporter Code. So let’s have a quick look at Importer Exporter Code (IEC).

Introduction

Any legal entity is engaged in the import-export activity or the service/technology provider takes advantage of the Foreign Trade Policy (FTP) at that time it is mandatory to acquire an Importer Exporter Code (IEC).

The type of company that applies for an IEC might be “Partnership, Proprietorship, (LLP) Limited Liability Partnership, Limited Company, HUF, Trust, and Society.” The IEC number is the same as the firm’s Permanent Account Number (PAN) as a result of the adoption of GST (Goods and Service Tax). The IEC would be issued separately by the Directorate General of Foreign Trade (DGFT).

What is IEC Code?

The Import-Export Code (IEC) is a necessary corporate identifying number for exports and imports. Without initially acquiring an IEC number from the DGFT (Directorate General of Foreign Trade), no one can engage in import or export activity.

Importer Exporter Code Deactivation by DGFT

The DGFT has mandated that all IEC holders ensure that their IEC information is updated electronically every year during April and June (for which no user charges will be borne by the IEC holder). The period for updating IECs was extended until July 31, 2021, and then until August 31, 2021, based on feedback from IEC holders who had not updated their IECs. With effect from 01.02.2022, all IECs that have not been updated after 01.07.2020 will be de-activated. In this interim time, the relevant IEC holders will have the ability to update their IECs until 31.01.2022, after which the given IECs will be de-activated on 01.02.2022. Any IEC that has submitted an online updating application but is awaiting clearance from the DGFT RA will be exempt from the deactivation list.

It should also be noted that every IEC that has been de-activated has the option of being automatically re-activated without the need for any manual action or visits to the DGFT RA. After 31.01.2022, IEC holders can go to the DGFT website and update their IEC online. After a successful update, the supplied IEC will be reactivated and the revised status will be submitted to the Customs system.

New Importer-Exporter Code (IEC) Amendments

• As stipulated in the Policy, the Importer Exporter Code (IEC) is required for export/import from/to India.
• Importer Exporter Codes are issued by the DGFT, and an application for issuance of an e-IEC ( Electronic Import-Export Code) can be made promptly on the DGFT official Notification.
• In addition, the application process for IEC and IEC upgrades is online, and IEC can be generated by the applicant following the procedures for upgrading IEC through the E-IEC portal.

Changes to IEC have been made by the Director General of Foreign Trade (DGFT) 

To avoid IEC Deactivation, all existing IEC holders should satisfy the following mandatory compliances

• Prompt Between April and June of each year, an electronic update of changes in the information provided for getting an IEC Code is performed.
• Even if the information provided has not changed, the IEC holder must confirm electronically between April and June of each year to prevent of being deactivated.
• To avoid the deactivation of an IEC, the reaction to hazards indicated in the DGFT portal against it must be handled by the IEC holders within a certain time frame.
• After updating information or receiving a response to a query through the DGFT Portal, the deactivated IEC can be revived.

Points to remember at the time of Modifying IEC on DGFT Portal

• A valid user ID credential should be there on the DGFT portal.
• Valid and Active Importer Exporter Code (IEC) in your user profile is must.
• At the time of making payment for Modification of IEC, a valid active company’s bank account is required.
• Active Aadhar for Members or Proprietor of the firms or an active DSC is needed.

The process to Update or Modify IEC (Importer Exporter Code)

• Go to the DGFT portal and click on update IEC.
• Login to the Import-Export Code dashboard on the DGFT platform.
• For updating your existing IEC, Link your IEC through Aadhar verification or Digital signature on the DGFT dashboard.
• Select update/modify IEC option.
• Once the above step is completed a form related to basic details and other information will be generated.
• Fill in all the information and submit the application.
• After a successful update, the IEC will be reactivated and the revised status will be submitted to the Customs system.

Conclusion

If an IEC is not updated within the specified time, it will be deactivated. On successful up-gradation, an IEC that has been de-activated can be re-activated. This would be in addition to any additional actions taken for violations of the FTP’s (Foreign Trade Policies) other requirements.