What Is IEC?
IEC, or Import Export Code, is a unique 10-digit number issued by the Directorate General of Foreign Trade (DGFT). If you plan to import or export anything from India, having an IEC is a must. It acts like an identity number for your import-export business.
Here’s why IEC is important:
- For Customs Clearance: Without an IEC, you can’t clear your goods at Indian ports.
- For International Payments: Banks ask for it while processing payments for imports or exports.
- To Avail Government Benefits: You’ll need it to apply for export-related schemes or incentives offered by the government.
Even though it’s issued for life, you still need to update it every year to keep it active.
Why Is Updating IEC Important?
As per DGFT’s Notification No. 58/2015-2020 (dated 12th February 2021), every Import Export Code (IEC) holder must update their details every year between April and June, even if there are no changes in the information. This simple confirmation keeps your IEC active and ensures your business stays compliant. If you skip this update, here’s what can happen:
- Your IEC Can Be Deactivated: This means you won’t be able to import or export goods until it’s reactivated.
- Trade Disruptions: Without an active IEC, customs clearance and bank transactions for foreign trade can be delayed or blocked.
How to Update Your IEC?
Updating your Import Export Code (IEC) is easy and can be done online. Just follow these steps:
- Visit the DGFT Website: For Website Click Here
- Log in to Your Account: Use your username and password. If you don’t have an account yet, you’ll need to create one.
- Link Your IEC: If your IEC isn’t already connected to your account, follow the steps to link it.
- Review and Update Your Details: Make any changes if needed. If nothing has changed, just confirm that your information is correct.
- Submit Verification: Use your Digital Signature Certificate (DSC) or Aadhaar-based e-verification to complete the update.
- Receive Confirmation: After submitting, you’ll get a message or email confirming that your IEC has been updated successfully.
Documents Needed to Update Your IEC
Before you update your Import Export Code (IEC), keep these documents handy:
- PAN Card: A self-attested copy of your business’s PAN card. This helps confirm your business identity.
- Address Proof: You can use a recent utility bill, rent agreement, or property ownership document to prove your business address.
- Bank Details: A cancelled cheque or a bank certificate in your business name to verify your bank information.
- Digital Signature Certificate (DSC): If you’re using a DSC to verify, make sure it’s valid and linked to the authorized signatory.
- Aadhar Card: If you choose Aadhar-based KYC, the authorized person’s Aadhar must be linked to their mobile number to receive the OTP.
Benefits of Updating Your IEC on Time
- Keeps Your Business Running Smoothly: Updating your IEC on time means you can keep importing and exporting without any interruptions.
- Stay Within the Law: Regular updates help you follow DGFT rules properly and avoid any legal trouble.
- Keep Access to Government Benefits: When your IEC is up to date, you stay eligible for export incentives and other government support.
- Avoid Penalties and Fines: Timely updates help you avoid fines or the risk of your IEC being deactivated.
- Save Time Later: By regularly updating, you won’t have to spend extra time and effort reactivating your IEC if it becomes inactive.
Limitations of Missing the IEC Update Deadline
- Your IEC Becomes Inactive: If you miss the deadline, your IEC will be paused, and you won’t be able to import or export anything.
- Business Delays: Shipments, customs clearance, and payments could get stuck, slowing down your operations.
- Extra Effort to Restart: You’ll need to complete the update process again to reactivate your IEC, which can take time.
- More Attention from Authorities: Missing the deadline might lead to extra checks or scrutiny from officials.
- Hurts Your Reputation: Your business partners and customers might lose confidence if you don’t stay compliant.
Conclusion
Updating your IEC every year between April and June is important for any business involved in importing or exporting. Missing the 30th June deadline can cause problems and slow down your work. So, make sure to update your IEC on time to keep your business running smoothly and follow the rules.
Suggested Read :
How to Update IEC Registration Details?
IEC Deactivation Process by DGFT
Role of IEC in International Trade
Change the Address of IEC Registration
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