Starting with a cursory description of what is IEC and who must register under it, we will talk about why is it important that you renew your registration. Finally, we will guide you through the steps which can help you achieve that.
The import-export code or IEC is a central government mandated license that is to be procured by any business person or trader if they are importing and exporting amenities and goods. It is almost like a PAN verification for any business and needs to be registered under The Directorate General, Foreign Trade (DGFT) body of the Central Government.
As per the latest rules and norms, from the 12th of February 2021, every IEC holder business is mandated to renew the IEC code online as per chapters 1 and 2 of the policy of Foreign Trade. Failing to do this can lead to suspension and cancellation of your IEC certificate. As a result, every business holder has to renew their Import and Export code license every year.
To answer in simple words, if the business holder wishes to conduct their trade with the least bumps and government interference, they should renew their IEC every twelve months. As per notification 58, published in February of 2021 Import-Export Code has to be renewed around April to May every year. The rules state that even in case there are n updates to be made, renewal is still necessary.
Under the 12th February amendment a bunch of other clauses were also introduced like:
If a business does not renew its certificate of imports/ exports what can happen? For starters, already the suspension of the code has been mentioned. But that won’t be all. If a business gets its IEC suspended or cancelled, it will have the same treatment as never having an IEC, to begin with. If the trade continues with no IEC license, there may come a time when it may get deactivated entirely. This can then lead to multiple complexities as the IEC is required at virtually every step of an export or import transaction – from customs to shipping and international trades. Hence, it is best to be judicious and renew the IEC code online.
Here the five steps that a business person has to follow to renew the IEC code online are illustrated in simple words. These are described here:
This is a quick checklist of essentials that the trader needs to renew their IEC certificate
One vital note is that all the details given for the renewal of the IEC certificate must match those of the IEC registration.