Annual Renewal of IEC to avoid De-Activation
Ministry of Commerce & Industry under the Government of India has recently made it mandatory to update the Import Export Code details for all Import Export Code holders every year, w.e.f FY 2021-22.
The department of DGFT or Directorate General of Foreign Trade has issued a gazette notification that from April to June once every year, the Import Export Code holders are now legally required to update the details through the online system even if there are no changes. Suppose an Import Export Code holder fails to update the details. In that case, their Import Export Code shall be de-activated, and no import-export activity will be possible with that Import Export Code.
Import Export Code related provisions in Chapter-1 and Chapter-2 of Foreign Trade Policy, 2015-2020 are now amended/deleted and replaced with new requirements. It is provided that an Import Export Code holder has to ensure that the details are updated electronically every year during the April-June period.
In cases where there have been no changes in Import Export Code details, the same also needs to be confirmed online.
An Import Export Code shall be de-activated if not updated within the prescribed time. Import Export Code so de-activated may again be activated on its successful Updation. This would, however, be done without prejudice to any other action taken for violation of any other provisions of the FTP.
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