TaxTMI 
TaxTMI 
TaxTMI 
Importer Exporter Code (IEC) - Compliances
X X X X Extracts X X X X
X X X X Extracts X X X X
....mporter Exporter Code (IEC) - Compliances<br>By: - YAGAY andSUN<br>Customs - Import - Export - SEZ<br>Dated:- 9-12-2025<br>Importer Exporter Code (IEC) - Compliances Covering Introduction, Relevant Provisions under FTP 2023 & HBP 2023, Compliance Checklist, Up-dation requirements, and Consequences of non-compliance - suitable for training, advisory notes, or client communication. 1. INTRODUCTION....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... - IMPORTER EXPORTER CODE (IEC) * IEC is a 10-digit business identification number issued by the Directorate General of Foreign Trade (DGFT). * It is mandatory for undertaking any import or export of goods/services (unless specifically exempted). * From FTP 2023 onwards, IEC is now called Importer-Exporter Profile, integrated with PAN-based identity and GSTN linkage. * IEC is lifetime vali....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d, but annual verification/updation is compulsory. 2. RELEVANT LEGAL PROVISIONS - FTP 2023 & HBP 2023 2.1 Foreign Trade Policy (FTP) 2023 (a) Para 2.05 - IEC Requirement * IEC (or e-IEC) must be obtained from DGFT online portal for imports/exports. * PAN is treated as the unique identifier; therefore, IEC = PAN of the entity. (b) Para 2.06 - Automatic Issuance * IEC/e-IEC is issued digit....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ally and instantly after Aadhaar-based authentication. * Physical copy not required. (c) Para 2.05(b) - Exemption IEC not required for: * Import/export by Central/State Government departments. * Goods imported/exported for personal use not connected with trade. * Persons/units specially exempted under FTP or customs laws. (d) Para 2.05(d) - Annual Updation (Statutory) * Every IEC hold....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er must update/confirm no change once every financial year during April-June. * Non-updation results in de-activation. 2.2 Handbook of Procedures (HBP) 2023 - Chapter 2 (a) Para 2.07 - Procedure for IEC Application * Application filed electronically on DGFT portal (ANF-2A). * Requires Aadhaar e-auth, PAN verification, GST details, bank details & digital signature/e-sign. * System auto-ge....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nerates IEC identical to PAN. (b) Para 2.09 - Modifications/Updation * IEC can be modified anytime (name, address, bank, branch, directors/partners, mobile/email). * Mandatory annual verification during April-June each year. (c) Para 2.10 - Deactivation/Reactivation * If IEC is not updated within the prescribed time, DGFT will automatically deactivate the IEC. * Reactivation possible wit....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hout penalty upon completion of updation. 3. COMPLIANCE CHECKLIST FOR IEC APPLICATION A. Pre-application Requirements * Valid PAN (Individual/Company/LLP/Firm/Trust) * Aadhaar of the authorised signatory * Active mobile number & email * DSC (if company/LLP) or Aadhaar e-sign * Bank account in name of applicant + cancelled cheque * Valid GST Registration (where applicable) B. Informa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion Needed * Registered office address / branch details * Director/Partner/Proprietor details * Nature of activities (manufacture/trade/services) * Industrial license (if applicable) * Importer/Exporter category (MSME, SEZ, EOU, etc.) C. Documents (Uploaded/Verified Digitally) * PAN auto-verified * Aadhaar authentication for signatory * Bank details through ICEGATE validation *....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Address proof (if required) D. System Auto-Validation * GSTN - PAN * IEC - PAN * Mobile/email OTP verification 4. UPDATION REQUIREMENTS (STATUTORY DUTY) 4.1 Mandatory Annual Updation (April-June) * Every IEC holder must confirm or update details every year. * Even if no changes, a "No change declaration" must be filed. 4.2 Updation "As and When Required" Any change ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....must be updated immediately on DGFT portal: * Change in registered address * Change in partners/directors * Change in mobile/email * Change in bank details * Change in branch/factory locations * Change in constitution (proprietorship/ partnership/company etc.) 4.3 Automatic Deactivation & Reactivation * Non-updation by June 30 - IEC deactivated. * Reactivation is instant afte....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r updation; no fee or penalty. 5. CONSEQUENCES OF NON-COMPLIANCE (a) Deactivation of IEC * IEC becomes inactive on DGFT system; no authorisation scheme can be applied. (b) Blocking of Import/Export Benefits * Ineligible for benefits under: * RoDTEP * RoSCTL * Advance Authorisation * EPCG * MEIS/SEIS (legacy) * Status Holder Certification * Claims may be rejected due to mismatc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....h of IEC status. (c) Customs Level Issues * Bill of Entry/Shipping Bill processing may face E-sealing or flagging, delaying clearance. * License-based clearances (AA/EPCG) may be held up. (d) Banking / FEMA Issues * AD banks may refuse: * Remittance documentation * GR/EDF/SDF filings * Export proceeds realisation documentation (e) Penal Consequences (If Linked to Mis-declaration) F....
X X X X Extracts X X X X
X X X X Extracts X X X X
....TP non-compliance may invite: * Penalties under Section 11(2) of FT (D&R) Act, 1992 * Suspension/cancellation of IEC if fraud/misuse suspected * Recovery of wrongly availed export incentives (f) Business Impact * Important foreign trade transactions may be halted * Delays in fulfilling export orders * Buyers/suppliers treat inactive IEC as a compliance risk 6. SUMMARY Feature Requi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rement / Impact IEC Application Online, PAN-based, Aadhaar authentication FTP 2023 Mandatory IEC for import/export; PAN = IEC HBP 2023 Procedures for issue, update, reactivation Annual Updation Mandatory April-June every year Failure to Update IEC auto-deactivated Consequences No DGFT benefits, customs delays, possible penalties Reactivation Allowed anytime without penalty ***<br> S....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cholarly articles for knowledge sharing by authors, experts, professionals ....