An Importer Exporter Code (IEC) is a mandatory requirement for businesses involved in international trade. The IEC registration in Bangalore is issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, allowing businesses to import or export goods and services across borders. One of the common concerns among traders is understanding the validity of an IEC and whether periodic renewal is required.
Validity of IEC Registration
The Import and Export Code registration in Bangalore comes with lifetime validity. Unlike other business licenses that require annual renewal, IEC remains valid unless the registered entity voluntarily surrenders it or the DGFT cancels it due to non-compliance. However, the government has introduced a compliance requirement where businesses must update their IEC details annually to keep it active.
Annual IEC Update Requirement
Though IEC does not require renewal, the DGFT mandates businesses to update their IEC details every year between April and June. Failure to update may lead to deactivation of the IEC, which can impact business operations. This update is essential to ensure that the IEC remains valid for seamless international transactions.
To comply with the update requirement, businesses need to log in to the DGFT portal and verify their registered details. If no changes are required, they must confirm the existing information and submit it online. In case of modifications, such as a change in address, company structure, or contact details, the IEC must be updated accordingly.
Consequences of Not Updating IEC
If an entity fails to update its IEC within the prescribed period, the DGFT will deactivate the IEC. A deactivated IEC cannot be used for import or export activities, leading to operational disruptions. However, deactivated IECs can be reactivated by completing the update process on the DGFT portal.
Benefits of Having an Active IEC
- Global Market Access: IEC is a mandatory requirement for businesses engaging in international trade. An active IEC ensures uninterrupted import and export activities.
- Business Expansion: With online IEC registration in Bangalore, businesses can access global opportunities and expand their operations.
- Government Schemes & Incentives: Companies with an active IEC can avail benefits under various government schemes, such as duty drawbacks, export promotions, and incentives.
- Smooth Banking Transactions: Banks require IEC for processing international transactions related to imports and exports. An active IEC ensures hassle-free payments.
How to Apply for IEC Registration?
Businesses looking to obtain IEC registration in Bangalore can complete the process online through the DGFT portal. The steps include:
- Visiting the DGFT website and selecting the IEC application form.
- Filling in business details, such as PAN, address, and bank details.
- Uploading required documents, including PAN card, Aadhaar card, and bank certificate.
- Paying the prescribed fee and submitting the application.
- Receiving the IEC code after verification.
Conclusion
The import and export code registration in Bangalore is a crucial requirement for businesses engaged in international trade. While the IEC has lifetime validity, annual updates are mandatory to keep it active. By ensuring timely updates and compliance, businesses can avoid deactivation and continue smooth trading operations. For hassle-free online IEC registration in Bangalore, consulting experts can simplify the process.
