Import Export Code Modification

What is an IEC Amendment ?

As per Notification No. 58/2015-2020, issued by the Directorate General of Foreign Trade (DGFT), all Importer Exporter Code (IEC) holders must update and verify their IEC details annually between April and June, even if there are no changes. This amendment, incorporated into Chapters 1 and 2 of the Foreign Trade Policy (FTP), ensures compliance and transparency in international trade.

Key Provisions of the IEC Update Requirement:

• Mandatory Annual Update: IEC holders must electronically update their details every year between April and June to keep their registration active.
• Confirmation of Unchanged Details: If there are no changes in the IEC details, the applicant must still confirm and verify this status online within the given timeframe.
• Deactivation for Non-Compliance: Failure to update IEC details within the stipulated period will lead to automatic deactivation, restricting all import and export activities.
• Reactivation of Deactivated IEC: A deactivated IEC can be reactivated after successful updating. However, this is subject to compliance with other FTP provisions, and further penalties or actions may be imposed if additional violations are found.
• Scrutiny & Compliance: IECs may be flagged for scrutiny if irregularities are detected. IEC holders must promptly resolve any compliance issues to avoid deactivation.

To prevent disruptions in import-export operations, businesses and individuals must ensure timely updates of their IEC registration and adhere to FTP regulations.

What are the details that can be modified in IEC ?

The annual renewal of the Importer Exporter Code (IEC) is not just a regulatory obligation but also an essential opportunity to update and correct previously submitted information on the Directorate General of Foreign Trade (DGFT) portal. During the IEC renewal process, businesses can make necessary modifications to ensure their IEC records remain accurate and up-to-date.
Key Aspects That Can Be Updated During IEC Renewal:

• Registered Address: Update the official business address to reflect any changes.
• Branch Address: Add or remove branch locations associated with the business.
• Contact Information: Modify mobile numbers and email IDs to maintain seamless communication.
• Bank Account Details: Update or change bank account numbers and financial details for transactions.
• Directors/Partners: Add or remove directors or partners involved in the business.
• Nature of Business: Revise the business activity type to align with any changes in operations.

Keeping the IEC information updated and accurate is crucial for regulatory compliance, smooth functioning of import-export operations, and avoiding potential trade disruptions.

The importance of IEC Amendment

The requirement to update the Importer Exporter Code (IEC) annually has become more crucial after 2021. Previously, once an IEC was issued, it remained valid indefinitely without the need for periodic updates. However, this led to issues when business details changed, resulting in outdated and inaccurate information on IEC records.

Key Reasons for Updating IEC Regularly:

• Maintaining Accurate and Up-to-Date Information: Updating the IEC ensures that essential business details such as addresses, contact numbers, and information about owners, partners, or shareholders are always current. This is vital for the Directorate General of Foreign Trade (DGFT) to maintain an accurate database for efficient trade regulation and management.
• Preventing IEC Deactivation: If the IEC is not updated within the prescribed timeline, it risks deactivation, which can halt all import-export activities. In India, an active IEC is mandatory for engaging in international trade, and failure to comply can lead to legal and operational disruptions.

By ensuring timely updates, businesses can avoid trade interruptions, stay compliant with DGFT regulations, and facilitate seamless international transactions.

Required documents for modification of IEC

When applying for modifications or updates to an Importer Exporter Code (IEC), the documentation required is similar to that of the initial application. The following documents must be submitted:

• Photograph of the Applicant: A recent, clear passport-sized photo of the individual requesting the IEC modification.
• Self-Attested PAN Card of the Entity: A self-attested copy of the Permanent Account Number (PAN) card of the business entity.Proof of Address of the Entity: Valid address proof documents, which may include:
  • Sale Deed (if the property is owned).
  • Rent Agreement (for leased properties).
  • Latest Utility Bills (Electricity Bill, Mobile Bill, or Landline Bill) reflecting the entity’s current registered address.

  • Pre-Printed Cancelled Cheque or Bank Certificate: A cancelled cheque (with the business entity’s name pre-printed) or a bank certificate verifying the applicant’s bank details.

Ensuring that all documents are accurate and up-to-date will help streamline the IEC modification process, avoiding delays and ensuring compliance with the Directorate General of Foreign Trade (DGFT) regulations.