IEC - New Compliance

Attention to IEC Holders, New Mandatory Compliances

What is an IEC or e-IEC?

The Importer Exporter Code (IEC) or Electronic Importer Exporter Code (e-IEC) is a key business identification number issued by the Director General of Foreign Trade (”Facilitator” of Exports/Imports), which is mandatory for undertaking any export/import activities from/to India.

Existing Procedure for Updation :

Prior to this notification, IEC Holder shall be responsible for updating the information provided as and when a change takes place immediately or in any case at least once in a year. And non updation of changes shall not end up in deactivation of the IEC.

Now the necessary amendments made in the Foreign Trade Policy, 2015-20 w.e.f 12th Feb’2021 to mandate the updation/confirmation periodically to ease in availing schemes by Exporters & importers and for the periodical KYC details updation.

New Procedure for Updation :

The Director General of Foreign Trade (DGFT) has made changes relating to IEC, w.e.f 12th Feb’2021 vide Notification No.58/2015-20:

All Existing IEC Holders should ensure the below mandatory Compliances, in order to avoid the Deactivation of IEC:

  1. Prompt Yearly electronic updation of changes in the information provided for obtaining IEC Code between April and June of every year.
  2. Even if there is no change in the information provided, it is mandatory for the IEC holder to confirm electronically between April and June of every year to avoid deactivation.
  3. The response for the risks flagged in DGFT portal against an IEC has to be addressed by the IEC holders within specified time to avoid deactivation of IEC.

The deactivated IEC can be reactivated after the updation of information or the response to the query in the DGFT Portal. As on date of publication of this notification No.58/2015-20 no Fees is prescribed by the Director General of Foreign Trade for reactivation of IEC.

From now on, all the existing & new IEC holders w.e.f 12th Feb’2021 should ensure the mandatory Compliance to avoid deactivation of IEC by the Authorities in-case of Non Compliance.

 

Who are we?

Aparajitha has been a compliance partner for the past two decades for more than 1500 corporates.

 

We’ve been recognized as the Pan India Experts in dealing with the complexities of Labour and Industrial Laws. We understand the statutory compliance applicability for each industry with our experiences and knowledge from time to time.

 

This long-standing strategic approach has produced a synergy that enables us to design and delivering industry-leading cost-effective solutions, along with specialized risk and compliance business process integration services to address all your present and future compliance requirements.

 

To understand more and receive insights on statutory compliance, post your query in the comment column or

please write to us at marketing@aparajitha.com

Thenmozhi Krishnakumar

Compliance Knowledge Hub

 

Disclaimer:  The article represents the opinions of the author and the author is solely responsible for the facts, cases, legal or otherwise reproduced in the article.      

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