The Importer exporter code (IEC) is mandatory for exports or imports to import or export any goods.
But now the government decided to de-activate all in-active IEC’s.
This de-activation will help the Government to identify the actual number of real traders in the country.
Hello, friends welcome to another fresh article of “Indiancustoms.Info”, With the help of this article I want to explain the reason for de-activation on importer exporter code (IEC) and how you can save your IEC from de-activation.
The Commerce Ministry has decided to deactivate all importer-exporter codes (IECs) that have not been updated after January 2005.
The de-activation process will start effect from 6th October 2021, With the help of this move, the government can understand the actual number of real traders in the country.
The Importer -Exporter Code (IEC) is a key business identification number that is mandatory for exports or imports.
No person can import or export any goods without IEC granted by the DGFT.
So, it is one of the necessary documents which help importers or exporters to do international trade.
Then why Government suddenly decided to suspend it?
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Why did Government Decide To De-activate Importer Exporter Code (IEC)?
The government did not take this decision to suspend IEC suddenly.
On August 8, 2021, the Directorate General of Foreign Trade (DGFT) was mandated all IEC holders to ensure that details in their IEC are updated electronically every year during the April-June period.
Especially for IECs which have not been updated after January 1, 2005, shall be deactivated with effect from October 6, 2021, according to a trade notice of the DGFT.
It stated that the concerned IEC holders are provided one final opportunity to update their IEC in this interim period till October 5, 2021, failing which the given code would be de-activated from October 6, 2021.
If you were applied for online updating IEC application has been submitted but is pending with the DGFT RA (regional authority) for approval.
This IEC will be excluded from the deactivation list.
Further, it said that for re-activation of the IEC after October 6, the IEC holder has to navigate to the DGFT website and update their IEC online.
Upon successful update, the given IEC shall be activated again and transmitted accordingly to the customs system with the updated status.
According to an industry expert, the de-activation of IECs helps in reducing the base load of the directorate and it helps in knowing the actual number of real exporters and importers in the country.
I hope now you understand why the government decided to deactivate Importer Exporter Code and how you can save your IEC code from deactivation. If anyone has any suggestions or queries please comment in the comment box.