How to Renew IEC Certificate Online? - Bizfoc

Overview 

IEC registration is the gateway to allow trading of business’ goods and services. This registration deals to identify the business importing goods and services abroad. IEC registration is necessary for the entities that deal with international trade. 

Many businesses apply for the IEC certificate to allow their products or services to get traded in the international markets. Earlier, the renewal of IEC certificate was not necessary and is valid for lifetime. But after the latest notification vide Notification No. 58 dated 12 February, 2021, certain amendments and clauses were introduced by DGFT regarding renewal of IEC. In this article, we will provide you complete insights on how to renew your IEC certificate and the eventual impact of non-renewal of IEC certificate. 

What is an IEC Certificate?

Directorate General of Foreign Trade (DGFT) issues Import Export Code Certificate. IEC Certificate which is a 10-digit alphanumeric number that helps to identify business importing goods and services abroad. This code is valid for the lifetime of the goods and services. This code is mandated under Foreign Trade (Development and Regulation) Act, 1992 to obtain IEC registration and quote IEC for import export related business activities. 

Who Needs an IEC Certificate? 

IEC Certificate is required at the time when an Indian business or manufacturing entity is willing to import and export either goods and services. This means IEC code is applicable on every business structure no matter what the business structure is. Following are the entities that are required to apply for IEC certificate for import export of goods and services:

1. Sole Proprietorship
2. Limited Liability Partnership 
3. Limited Liability Company
4. Charitable Institution who are willing to undertake Import Export Activities 
5. Registration according to the business structures such as Partnership Firm Registration and Private Limited Registration

Why Should you Renew IEC Certificate?

The DGFT has recently issued the notice regarding the mandatory requirement of IEC renewal on 12th February 2021, the DGFT vide Notification No. 58/2015-20 dated February 12, 2021, has made it mandatory to renew/update the IEC on an annual basis during the April-June period. 

1. Entities who are holding IEC certificates need to electronically update their IEC details every year. 
2. Nowadays, renewal of IEC Certificates electronically known as e-IEC. 
3. IEC can be deactivated within the particular time frame if it is not updated within the particular time frame. However, it can be reactivated electronically upon successful updating. 
4. In case if any IEC holder faces any flagged risks, then an IEC holder is responsible for addressing the issue regarding flagged risks. If any holder has failed to address the flag issue then the concerned account shall be deactivated. 

Impact of Non-Renewal of IEC Certificate

Here is the impact of non-renewal of IEC certificate in India, which is mention as follows:

1. The account holder will be deactivated if the account holder is not updated within the specified timeframe. 
2. On deactivation of the account, the trade of the particular business entity won’t operate and hence no export import will happen. 

How to Renew an IEC Certificate?

Here is the step-by-step procedures to renew IEC certificate:

Step 1: Visit DGFT Portal: 

For renewing an IEC certificate, you are required to login to the DGFT portal. In this portal, you need to register your business on the website or if you have already registered, you need to apply for IEC. 

Step 2: Login Credentials

On visiting the portal, you need to login the DGFT portal by filling credentials such as Login ID and passwords. On landing on another page after logging in, click on the Update tab, check all the details and submit the application with Aadhar or DSC. 

Step 3: Linking Account for Authentication 

On linking your account for authentication, you can renew information on IEC. You need to choose to update/modify your IEC option. And then you’ve to fill in the required details. 

Step 4: Review Changes 

On completing the above 3 steps, you need to review the change. Use your Digital Signature Certificate to authenticate it. 

Step 5: Print the IEC Certificate

On updating or modifying the IEC code, you can print the IEC certificate. 

Conclusion 

In most cases, an account holder of IEC certificate won't be able to renew their IEC registration or cannot update IE code unless the professional expert guidance. For renewing your IEC certificate, you can also contact Bizfoc for accurate guidance so you won’t face any delay regarding export of international trade. Renewal of IEC is not as easy by an individual themselves and shall require the supervision of experts to guide on. In order to stay compliant in trading the products and services, you need to follow the above steps for renewing IEC registration. 

Frequently Asked Questions 

1) Does the IEC need to be renewed every year?

Yes, IEC is needed to be renewed every year vide Notification No. 58/2015-20 dated February 12, 2021, has made it mandatory to renew/update the IEC on an annual basis during the April-June period. 

2) Does IEC have an expiry date?

Yes, IEC registration has a maximum validity of 12 months from the date of issuance. However, it needs to be renewed in the April-June period every year.

3) What are the basic documents required for renewing IEC registration?

There is no basic documents required for renewing IEC registration. We need only DGFT login credentials and Aadhar Card of the applicant to renew IEC. If need to change any details, then we need to get the specific documents. 

4) Is there any fee associated with the IEC registration?

No, there is no fee associated with the IEC registration if we renew the IEC registration within this stipulated time. If we renew after June, a fee will be applicable. 

5) Can I make any major changes regarding the IEC registration during renewal?

Yes, you can make changes regarding the IEC registration during renewal. These changes may include change in the mobile number, bank account details, modification in business registration, director/partner details and contact information. 

6) Can I change my business name during renewal?

Yes, you can change the name of the business during renewal.