Import Export Code Modification - Update IEC

Starting an import-export business requires careful planning, including obtaining necessary licenses and documents. An essential document for this is the Importer Exporter Code (IEC) certificate, necessary for exploring global markets. Individuals or businesses cannot engage in import or export activities without an IEC, except under specific exemptions.

IEC holders must now annually modify and update their IEC Details online between April and June, even if no changes are needed. Failure to do so leads to IEC deactivation, halting all import-export operations. IndiaFilings offers expert assistance to navigate the IEC Modification process smoothly and ensure your IEC is up-to-date.

Contact our experts today to get started for a seamless IEC modification process!

What is the Import Export Code?

The Import Export Code, or IEC, is a 10-digit identification number issued by the Director General of Foreign Trade (DGFT) under the Department of Commerce, Government of India. This code is mandatory for businesses that intend to engage in import and export activities in and out of India. It is a critical registration document that identifies the importer/exporter and is used in various trade transactions.

To streamline the process of obtaining your IEC code and ensure compliance with trade regulations, IndiaFilings offers an easy and efficient service to help businesses acquire their IEC code with minimal hassle.

IEC modification

IEC modification refers to updating or altering the details associated with an Importer Exporter Code (IEC) registration. The need for modification arises in several scenarios:

• Change in Business Details
• Correction of Errors
• Updating Contact Information
• Bank Account Changes
• Changes in Partners or Directors

The modification process typically involves submitting the updated information through the Directorate General of Foreign Trade (DGFT) platform and any required supporting documents. DGFT mandates regular updating of the IEC to ensure that all records are current and accurate, which is crucial for smooth international trade operations.

Why does IEC need to be updated/Modified?

Updating the Importer Exporter Code (IEC) is a crucial compliance requirement for businesses engaged in import and export activities.

• As per Notification No.58/2015-2020, all IEC holders are mandated to electronically update their IEC details annually, specifically between April and June. This is a regulatory requirement set by the Directorate General of Foreign Trade (DGFT).
• Please update IEC details within this stipulated timeframe to avoid the deactivation of the IEC. A deactivated IEC can halt import/export activities, affecting business operations and causing potential financial losses.

Benefits of Modifying the IEC

Updating Importer Exporter Code (IEC) details regularly offers several significant benefits for businesses engaged in international trade. Here are some key advantages:

• Regulatory Compliance: Regular updating ensures compliance with the Directorate General of Foreign Trade (DGFT) regulations. This compliance is crucial for avoiding legal complications and potential penalties.
• Avoidance of IEC Deactivation: Timely updates prevent the deactivation of your IEC. An active IEC is essential for uninterrupted import and export transactions.
• Smooth International Transactions: Updated IEC details facilitate smoother processing of your international trade transactions. Customs and other trade authorities rely on accurate IEC information for clearances and approvals.
• Credibility and Trustworthiness: Keeping IEC details current enhances the credibility of your business with partners, regulatory bodies, and financial institutions.
• Easy Access to Export-Import Benefits: An updated IEC is often a prerequisite for availing of various government schemes and incentives related to export and import.
• Accurate Record Keeping: Regular updates ensure that the IEC database reflects the current state of your business, aiding in accurate and efficient record keeping.
• Quick Response to Business Changes: Updating IEC details promptly after changes in your business structure, management, or operations helps maintain the accuracy of your business profile in government records.
• Enhanced Business Opportunities: An up-to-date IEC can open up more opportunities for global trade, as many international buyers and sellers look for compliant and diligently maintained business profiles.

What are the details can be Modified?

When updating your Import Export Code (IEC) annually, which is now mandatory, you have the opportunity to modify several key details submitted to the DGFT (Director General of Foreign Trade) portal. These modifications ensure that your business information remains current and compliant. The types of modifications you can make during the IEC update process include:

• Statutory Modification: IEC holders are required to update their certificate at least once a year, adhering to the guidelines set by the DGFT.
• Voluntary Modification: In cases of typographical errors or misprints, or if the applicant wishes to change specific information, amendments can be made to the IEC details.
• Change in Company Name: Modifications are necessary if there is a change in the name of the company.
• Change in Registered Office Address:

• Update the principal place of business if there has been a relocation or change in the registered office address of your firm.
• Modification of Branch Office Address includes adding new branch addresses, deleting old ones, or modifying existing branch office details.

• Updating Contact Details: If there have been changes in the mobile number or email ID associated with the business, these can be updated.
• Changes in Partners/Directors Details: Any modifications in the details of partners or directors of the firm can be made to keep the IEC information aligned with current management.
• Nature of Business: If there have been changes in the nature or type of business, these details can be updated to reflect the current business operations accurately.
• Bank Details Modification: Any changes in the bank details that were previously submitted can also be updated.

Procedure to Update or Modify IEC

Procedure to update or modify your Importer Exporter Code (IEC) online, follow these detailed steps:

To modify the IEC, the Importer/Exporter need to visit the official website of DGFT. The modification process involves six stages:

Stage 1: Update General Information

Review and modify general information if necessary. This includes:

• Nature of the firm
• Firm name
• PAN details
• Name as per PAN
• Date of birth
• Category of exporters
• Mobile number
• Email
• Proof of establishment
• Firm address details
• Branch details

Stage 2: Update Partner Details

Here, you can add or delete details of partners, directors, proprietors, and managing trustees. To add a new director or partner, provide:

• Director number (DIN)
• Name
• PAN
• Date of birth

Stage 3: Bank Account Details

Update your bank account details, especially if there have been openings or closures in the last financial year.

Stage 4: Preferred Sector of Operation

Update details about your preferred sector of operation. For exporters, select the appropriate category of products you export.

Stage 5: Declaration

Read and agree to the declaration by ticking the checkbox, confirming that the information provided is accurate.

Stage 6: Submitting the Application

After completing all stages, preview your IEC application. Submit the application for the update. Once submitted, the DGFT will process your application, and your IEC details will be updated as per the modifications you have made.

Consequences of not Updating the IEC Code

As mentioned above, The non-updating of the Import Export Code (IEC) number can have significant consequences for businesses engaged in international trade. As it's mandatory to update the IEC code annually between April and June, with the final deadline being June 30th, timely action is crucial. The key consequence of not renewing the IEC code is the deactivation of the IEC certificate.

Given these consequences, it's crucial for importers/exporters to ensure timely updates of their IEC.

IndiaFilings can streamline this process, helping businesses stay compliant and avoid the pitfalls of IEC deactivation.

DGFT's IEC Update Policy and Reactivation Process

• Regular Reminders for IEC Updates: The Directorate General of Foreign Trade (DGFT) will send periodic notifications to all Importer Exporter Code (IEC) holders, reminding them to update their IEC details.
• IEC holders who do not update their IEC by the end of June risk having their IEC deactivated. This deactivation will prevent any export or import transactions under the Consequences of Not Updating IEC:inactive IEC.
• Reactivation of IEC: If an IEC holder's code is deactivated, they can reactivate it by following the standard IEC update steps. The IEC will be reactivated upon successful completion of these updates.
• Exemption from Annual Update: If the IEC was updated within the last 365 days before the month of June, there's no need for the holder to update the IEC details again during the April to June period of that year.

Why Choose IndiaFilings for IEC Modification?

For individuals or businesses looking to modify or update their IEC, IndiaFilings offers expert guidance and support throughout the entire process. Our team of experienced professionals helps in navigating the DGFT website, managing the application process, and ensuring that all required information is accurately updated. We provide end-to-end assistance, from understanding the necessary documentation to submitting the final application.

Contact our experts now and get started on your IEC modification with ease and confidence!