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All you need to know about “IEC Deactivated”

All you need to know about “IEC Deactivated”



Let’s start right from the beginning, for those who are unaware of the term IEC, let me tell you it stands for Importer Exporter Code. If you are someone who works in the field of import and export or is somewhat engaged in it by any chance, then you must have a clear understanding of IEC as it can provide you with an advantage as per the Foreign Trade Policy but that will be only possible if you are well versed with IEC.

What is IEC Code?

The Import Export Code is something of great importance in the process of exporting and import of goods and services. In simple terms, it is a mandatory corporate identifying number for exports and imports.

It is time to let the cat out of the bag, if due to any reason you fail to obtain the IEC code from the main authority, then you cannot engage in any activity related to export and import. The Directorate General of Foreign Trade (DGFT) is the main authority for exports and imports. 

Following are the major points that an Importer Exporter Code holder must be well versed with at all costs:

  1. An IEC holder must make it a point to ensure that all the details that are stated in his/her IEC are updated regularly. To be precise, the applicant should keep their IEC updated electronically every year and that too within the April to June period, failing which their Importer Exporter Code Certificate  shall be de-activated and no import or export activity will be possible. Further, no user charges will be borne by the IEC holder during April to June period.  

You can just go to the official site of DGFT and update your Importer Exporter Code online. After the successful update, the supplied IEC will be reactivated and the revised status will be submitted to the Customs system.

I know you must be thinking what if there is no change in your IEC details over time, then in that case also, you have to get your IEC updated my friend. You have re-check and confirm the details irrespective of the fact that there is no change present in the IEC details. Let’s say for instance if any IEC has been submitted to the authorities via online means for up-gradation but is awaiting clearance from the DGFT RA then it will be exempted from the deactivation list.

  1. An IEC shall be deactivated, if it is not updated within the prescribed time period and when you get the IEC all updated to the current financial year, then you don’t have to approach the respected authority to get the Importer Exporter Code back to activated mode from the deactivated mode as it will happen automatically. You can get the Importer Exporter Code that has been deactivated by the end of authority automatically re-activated without the need for any manual action or visits to the DGFT RA. 

But just remember that the shift in the status of the IEC update will take place only after the successful up-gradation of this step without any prejudice to any other action is taken by the authority for violation of the provisions of the Foreign Trade Policy. 

  1. An IEC holder can also be flagged for scrutiny by the respected authority. So if you are an Importer Exporter Code holder at the moment or you are about to be in the times to come, know certain that any flags that have been flagged by the system towards you need to be addressed on time and if you fail to do so then it can result in the deactivation of the IEC. 


If the Importer Exporter Code is not updated within the designated period, then it will be deactivated. Then, the Importer Exporter Code that has been deactivated will only be reactivated after you have successfully managed to upgrade it. This would be a plus one to any additional actions taken for violations of the FTP’s (Foreign Trade Policies) other requirements. 

DGFT Consultants

Authors Bio:-

Sudheer Varma Vegesna 

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