IEC Code Renewal: Is It Required?
If you are an importer or exporter in India, you’ve probably heard mixed opinions about IEC Code renewal. Some say it’s a lifetime license, others warn about penalties if it’s not renewed annually.
So what’s the truth?
👉 Is IEC Code renewal required in India or not? 👉 What happens if you don’t renew or update your IEC?
This blog explains everything clearly—rules, validity, annual update requirements, penalties, and compliance tips—based on current DGFT guidelines.
What Is an IEC Code?
An Import Export Code (IEC) is a 10-digit unique identification number issued to businesses and individuals engaged in import or export activities in India.
The IEC is issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry.
Without a valid IEC:
You cannot import or export goods
Customs clearance becomes impossible
Banks may reject foreign trade transactions
IEC Code Validity: Is It Lifetime?
✅ Yes, IEC Code Has Lifetime Validity
As per DGFT rules:
IEC Code does NOT expire
There is no traditional renewal process
One IEC is valid for the entire life of the business
This is why many people assume IEC renewal is not required at all—but that’s only half the truth.
Is IEC Code Renewal Required in India?
❌ No Traditional Renewal
✅ Yes, Annual IEC Update Is Mandatory
While IEC does not require renewal, annual IEC updation is compulsory.
DGFT mandates that every IEC holder must confirm or update their IEC details every year, even if there are no changes.
What Is the Annual IEC Update Requirement?
The annual IEC update is a mandatory compliance requirement, not a renewal.
Key points:
Must be done once every financial year
Applicable even if business details remain unchanged
Requires confirmation of:
Address
Bank details
Business constitution
Contact details
Failing to do this can lead to IEC suspension.
Why Did DGFT Introduce Annual IEC Update?
DGFT introduced this rule to:
Maintain accurate exporter/importer data
Prevent misuse of inactive IECs
Improve compliance monitoring
Align IEC with digital governance standards
This helps DGFT maintain a clean and transparent foreign trade ecosystem.
What Happens If IEC Code Is Not Updated Annually?
This is where most businesses get into trouble.
❌ Consequences of Not Updating IEC
If you fail to complete annual IEC updation:
IEC may be deactivated or suspended
Import/export operations can be blocked
Customs clearance may fail
Banks may reject foreign remittances
E-commerce seller accounts may be suspended
In short, your business operations can come to a halt.
Is There Any Penalty for Not Updating IEC?
Currently:
There is no direct monetary penalty
But IEC suspension is a serious operational risk
Reactivating a suspended IEC often causes:
Delays in shipments
Loss of customers
Compliance backlogs
Prevention is far easier than reactivation.
Who Must Do IEC Annual Update?
Annual IEC update is mandatory for:
Importers
Exporters
Manufacturers
Traders
Service exporters
Proprietorships
LLPs
Private limited companies
MSMEs
E-commerce sellers
There are no exemptions for business size or turnover.
How to Update IEC Code Online (Brief Overview)
IEC updation is done through the DGFT online portal.
Basic steps:
Log in to DGFT portal
Access IEC profile
Verify existing details
Update changes (if any)
Submit annual confirmation
Download acknowledgement
Even if nothing has changed, confirmation is mandatory.
Common Myths About IEC Code Renewal
❌ Myth 1: IEC renewal is mandatory every year
✔ Truth: No renewal, only annual update
❌ Myth 2: IEC expires after some years
✔ Truth: IEC has lifetime validity
❌ Myth 3: Small businesses don’t need IEC updates
✔ Truth: Applies to all IEC holders
❌ Myth 4: Update is required only if details change
✔ Truth: Update is mandatory even if nothing changes
Benefits of Regular IEC Compliance
Staying compliant with annual IEC updation helps you:
Avoid suspension or deactivation
Ensure smooth customs clearance
Maintain uninterrupted imports/exports
Stay eligible for export incentives
Build credibility with banks & clients
Compliance = business continuity.
Frequently Asked Questions (FAQ)
Is IEC Code renewal compulsory?
No. IEC does not require renewal, but annual updation is compulsory.
Do I need to update IEC every year?
Yes. DGFT mandates annual IEC update for all IEC holders.
Can IEC Code expire?
No. IEC has lifetime validity, but can be suspended for non-compliance.
What happens if IEC is suspended?
You cannot import or export until it is reactivated.
Is annual IEC update free?
Currently, DGFT does not charge a government fee, but professional charges may apply if you use a consultant.
Conclusion: IEC Renewal Is a Myth, Annual Update Is Mandatory
To summarize:
IEC Code renewal is NOT required
IEC Code has lifetime validity
Annual IEC updation is mandatory
Non-compliance can lead to suspension and business disruption
If you are involved in import or export, annual IEC compliance should be on your priority checklist every year.